Economy

Australia's Deutsche Bank staff to learn fate — MASS LAYOFFS

Australia's Deutsche Bank staff to learn fate — MASS LAYOFFS

A few hours after the Hong Kong staff left, workers were seen leaving Deutsche Bank's office in London.

Paul Achleitner, the chairman of Deutsche's supervisory board, said: "Deutsche Bank has been through a hard period over the past decade, but with this new strategy in place we now have every reason to look forward with confidence and optimism".

Last week, the head of Deutsche's investment bank Garth Ritchie agreed to step down, marking a sign of the division's waning influence.

By 2022, the Bank plans to cut its workforce to 74,000 employees, and the restructuring operation is expected to cost approximately $ 8.3 billion over three years.

The Guardian reported how 100 people had been made redundant on the fourth floor while some members of staff were seen leaving the office in tears.

Deutsche Bank AG's radical overhaul is about focusing the German lender on businesses where it's most competitive and the days of "spectacular ambition" at the investment bank are over, according to Chief Executive Officer Christian Sewing.

The latest plan to relaunch the bank involves closing its equities sales and trading arm, which is essentially a giant stock broking operation that buys and sells publicly-listed shares on behalf of large hedge funds or asset managers.

It would also slim down its division focused on fixed-income investments.

Sewing didn't share any additional information about the investments but said that details would be disclosed in the bank's next quarterly report.

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A few hours after the Hong Kong staff left, workers were seen leaving Deutsche Bank's office in the City of London, which along with NY is expected to bear the brunt of the cuts, carrying similar envelopes.

The bank went three years consecutively without turning an annual profit before recording positive earnings for 2018.

The restructuring comes after a failed merger attempt with rival Commerzbank this spring, which was considered too risky for both banks.

CEO Christian Sewing took over past year and promised faster restructuring after predecessor John Cryan was perceived to have moved too slowly to restructure the bank.

Deutsche Bank has been operating in Australia since 1973, with offices in Sydney, Melbourne and Perth.

The bank has also paid billions in fines and settlements related to behaviour before and after the global financial crisis, including a $7.2bn settlement in 2017 with the US Justice Department over selling bonds based on mortgages to people with shaky credit.

But that had not ended the negative headlines. Two congressional committees have subpoenaed Deutsche Bank documents as part their investigations into President Donald Trump and his company.

Mr Trump had sued Deutsche Bank to stop the subpoenas, but a judge in May ruled against the president.