Deutsche Bank could cut another 10,000 jobs
Deutsche Bank could be preparing to cut another 10,000 jobs in a massive cost-saving drive.
According to a Reuters report, the German lender's finance boss, Marcus Schenck, told staff in September the bank will need to "cut another 10,000 staff" on top of the 9,000 job losses announced by chief executive John Cryan last October.
Read more: Deutsche Bank – where did it all go wrong?
The announcement was made to staff in an internal email last month, according to an anonymous source at the bank. It comes just one day after the firm said it was implementing a hiring freeze in order to keep costs under control.
Deutsche Bank has suffered a tumultuous 18 months which has seen the bank fighting legal action in multiple jurisdictions along with having to adjust to the new era of lower-for-longer interest rates.
Today shares were up 3.5 per cent at €12.41 in lunchtime trading.
In September the firm's share price set a new record low and its market capitalisation sank to below €15bn after the US Department of Justice levelled a $14bn fine against the firm for its actions selling mortgage-backed securities in the run-up to the crisis.
Although analysts expect such a fine will be reduced – Standard and Poor's, for instance, have pencilled in an eventual $5bn to $6bn settlement – concerns for the bank were raised after the German chancellor Angela Merkel was forced to deny she was planning a state-backed bailout of the lender.
Deutsche Bank currently employs just shy of 100,000 employees, with that number expected to drop by at least one-fifth as part of the restructuring plan being driven by chief executive John Cryan, who was brought in during last summer to help reform the bank.
Deutsche Bank declined to comment.