Latest to be affected by the undergoing restructuring at Deutsche Bank are dozens of traders and salespeople in its global fixed-income ranks. This unit had been largely spared from the initial rounds of job reductions at the bank.
Deutsche Bank's Chief Executive Officer, Christian Sewing is working towards turning around years of poor profitability. When the restructuring plan was first laid out in July, the equities-trading division was the one to get slashed. However, the bank had stayed committed to most of the fixed-income unit, under the strategy of focusing on businesses where the bank is a leader.
Then, reportedly, the bank even cut traders in high yield, distressed and investment-grade debt teams in New York and abroad. But as it continues to struggle with costs and deals with some underperforming divisions, more job reductions are to follow.
The firm has even lost senior fixed-income veterans, including John Pipilis, who oversaw the entire unit globally. This week, it was also reported that Paul Huchro, a credit trading executive is leaving the bank. Even Managing directors Eric Eisner and Paul Delaney in the Latin America unit, Timothy Fischer in leveraged credit sales, and Andrew Meany in credit trading, are all moving out of Deutsche Bank.
While restructuring is important for the bank to come out of the shambles years of poor profitability has created, how can it be done without experienced talent on board.
It not only Deutsche Bank, many other banks have also laid off employees this year. As the outlook for the economy weakens, banks across the globe have announced more than 48,500 job cuts this year. Deutsche Bank tops the list, but others like Spain’s Banco Santander SA, HSBC Holdings Plc and Barclays Plc in the U.K., and France’s Societe Generale SA are slashing thousands of jobs as well.
Further, falling interest rates, and weak trading volumes have also led global investment banks to shed tens of thousands of jobs. With bank executives bein under pressure from investors to cut costs and protect profits, more layoffs may follow.