Whole teams in Deutsche Bank’s Asian operations were told their positions were gone on Monday as the lender began axing 18,000 jobs globally in one of the biggest overhauls to an investment bank since the aftermath of the financial crisis. The German bank launched the restructuring on Sunday in Europe, outlining a plan that will ultimately cost 7.4 billion euros (US$8.31 billion) and see it dramatically scale back its investment bank – a major retreat after years of working to compete as a major force on Wall Street.
As part of the overhaul, the bank will scrap its global equities business and also cut some of its fixed income operations – an area traditionally regarded as one of its strengths. Deutsche Bank gave no geographic breakdown for the job cuts, though the bulk are widely expected to fall in Europe and the United States. The global day on Monday, however, began with cuts in Sydney, Hong Kong and elsewhere in the Asia-Pacific region.
Deutsche had some 4,700 staff in Sydney, Tokyo, Hong Kong and Singapore, showed factsheets on its website. Its investment banking team for the Asia-Pacific region numbered about 300 people before the cuts, and 10 per cent to 15 per cent will be laid off – almost all in its equity capital markets division, according to a senior Asia banker with direct knowledge of the plans.