Deutsche Bank to spend €13bn on tech amid massive job cuts

As Deutsche Bank Axes 18,000 Jobs Bitcoin Offers a Powerful ‘Plan

As Deutsche Bank Axes 18,000 Jobs Bitcoin Offers a Powerful ‘Plan

The bank's plans would lead to cost savings of Euro 17 billion by 2022.

The Sydney Morning Herald reports at least 50 jobs are expected to be axed from the Sydney office in the preliminary "reinvention" stages, however, it is unclear if jobs will be cut at the other Australian offices in Melbourne and Perth. The equities business is focused largely in NY and London.

Deutsche Bank is reportedly in meetings with its Australian staff to discuss how the firm's global downsizing plan will affect local operations.

'"I'm trying to get my head straight", says one person who has been told his pass will stop working in a few hours'.

To reflect on the "significant challenges" facing Deutsche Bank, however, the agency maintained a negative outlook for it and is threatening to downgrade the current A3 rating.

The bank, which has its headquarters in Frankfurt, in Germany, said on Sunday that it would drop its stock sales and trading unit as part of a plan to exit more volatile investment banking activities.

The bank is sacking a total of 18,000 people as it destroys its equities business and cuts its fixed interest trading business - one of its traditional strengths- to a mere shadow of itself.

In addition to its struggles in the equities and fixed income markets, Deutsche has also incurred heavy fines for misconduct, failed United States stress tests and has most recently been served with subpoenas from U.S. senators over its past dealings with Donald Trump.

The ver.di was assuming that the planned staff reductions would mostly take place in the Bank's investment banking division which is mainly based in London and NY.

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

The aim is to focus on areas where the bank is among market leaders, and on businesses with steadier earnings such as serving corporate customers.

"If you have a job for me, please let me know", said a banker leaving the Hong Kong office on Monday.

The Financial Times commented "The new strategy signals a retreat from Deutsche's ambitions to be a European rival to Goldman Sachs, as chief executive Christian Sewing refocuses on the bank's foundations in European corporate financing and domestic retail banking".

'We are tackling what is necessary to unleash our true potential: our business model, costs, capital and the management team. "In doing so, we can build on the many innovations that our bank has developed over the past couple of years".

The bank which is headquartered in Frankfurt said that it cut almost a quarter of its total annual expenses from 22.8Bn euros in 2018 to 17Bn euros, through measures like dropping the stock-trading business of the investment bank.

A Deutsche Bank employee in Bengaluru told Reuters that he and several colleagues were told first thing that their jobs were going.

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

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