Deutsche Bank to axe 18,000 jobs

A view of the headquarters of German bank Deutsche Bank in London

A view of the headquarters of German bank Deutsche Bank in London

Deutsche Bank will cut 18,000 staff, scrap its global equities business and scale back its investment bank in a broad, A$11.9 billion restructure.

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. The bank expects to report a net loss of more than $3 billion for the second quarter.

Beyond the expected cutbacks to equities, Deutsche said it would also axe some of its fixed income operations, an area traditionally regarded as one of the bank's strengths.

It says it will also bundle 74 billion euros of assets into a separate unit for disposal, freeing capital reserves to pay for the restructuring.

The overhaul, one of several over the past few years, signals that Deutsche is coming to terms with its failure to keep pace with Wall Street's big hitters such as JP Morgan Chase & Co and Goldman Sachs.

Mr Sewing will now represent the investment bank on the board in a shift that illustrates the division's waning influence.

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"Today we have announced the most fundamental transformation of Deutsche Bank in decades", chief executive Christian Sewing said, according to BBC.

Some employees at the bank's offices in Hong Kong have already started packing their belongings, the person said.

Following the raid, the bank said that it has "no concrete evidence that would support the allegations against us or any of our employees". The equities business is focused largely in NY and London.

In 2018, Deutsche cut 6,000 jobs, The Guardian says.

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. Stephan Szukalski, head of the DBV union, told Reuters that the measures were in the right direction. The bank failed USA bank stress tests, suffered downgrades to its investment grade ratings, and, to add insult to injury, had its offices raided by German law enforcement in November 2018 as part of a money-laundering investigation linked to the Panama Papers leaks.

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