SYDNEY / HONG KONG (Reuters) – Deutsche Bank ( DBKGn.DE ) shares rose on Monday as it launched one of the largest audits of the investment bank since the financial crisis by cutting 18,000 jobs around the world, starting day with cut in Asia.
The lender announced the job losses on Sunday as part of a restructuring plan costing 7.4 billion euros (8.3 billion euros), and sees the year of regret of work intending to make the investment bank a great force on Wall Street .
As part of the audit, the Bank will scrape its global equity business and cut some fixed rate operations, an area traditionally considered one of its strengths.
Shares in Deutsche Bank were up 4.7% in Frankfurt at 0625 GMT, according to data from the brokerage firm Lang & Schwarz.
Deutsche Bank did not provide any geographical breakdown for job losses, although the masses are expected to fall largely in Europe and the United States. The global workday on Monday began with cuts in Sydney, Hong Kong and elsewhere in the Asia-Pacific.
Bankers looking to leave Deutsche Bank's office in Sydney on Monday said they had been laid off, but refused to be identified as they were to return later to sign redundancy packages.
A person with knowledge of the bank's Australian operations also said that the company's four-strong equity fund market (ECM) group was dissolved. But the person also said that most of the mergers and acquisitions (M&A) were not immediately affected.
The whole team in sales and trade lost their jobs, according to several banks in Germany.
Regionally, Deutsche used to rank among the top 1[ads1]0 banks in league tables for ECM deals, but it had gone in recent years, beating 17. last year and 18 in 2019, Refinitive data showed. So far this year, it is the 8th regional regional for M&A activity.
Deutsche had around 4,700 employees at the headquarters in Sydney, Tokyo, Hong Kong and Singapore, and the fact sheets on the website showed.
The Bank's Asia-Pacific Investment Bank had about 300 people ahead of the cuts, of which 10% to 15% will be settled, almost all in its ECM division, a senior Asian banker with direct knowledge of plans said.
A closed stock trader in Hong Kong said the mood was "quite gloomy" as people were called individually for meetings. He said that after talking to human leaders, "they give you this package and you're out of the building."
Several workers left offices with large envelopes with the bank's logo. Three employees took a picture of themselves next to a large Deutsche Bank logo outside and cut each other before greeting a taxi.
"If you have a job for me, please let me know. But don't ask," a person confirmed that he was employed by Deutsche Bank. He refused to comment further.
A spokesman from Deutsche Bank refused to comment on specific departures and said the bank would communicate directly with employees and would be "as responsible and sensitive as possible to implement these changes."
CEO Christian Sewing said on Sunday that It was the most fundamental transformation of the bank for decades. "This is a restart," he said.
"We create a bank that will be more profitable, slimmer, more innovative and more resilient," he wrote to the staff.
The bank will set up a so-called bad bank to liquidate unwanted assets, with EUR 74 billion of risk-weighted assets.
Sewing will represent the investment bank on the board in a shift that illustrates the division's declining influence.
The CEO had flagged the restructuring in May, and promised the shareholders "tough cuts" to the investment bank. It followed Deutsche's lack of consent to a merger with competitor Commerzbank AG ( CBKG.DE ).
"The new investment bank will be smaller but more resilient, focusing on our funding, capital markets, advisory services and sales and trading activities," said Werner Steinmueller, director of the Asia Pacific region, on Monday to a letter to the staff being reviewed. Reuters
A senior bank, which still had their job, said the bank did not give up on deals it worked with, but asked how well the scaled-down franchise could compete in the future.
"The biggest question for us is where do we go from here if we do not offer the full range of products. Will clients stick with us or play over? "He said.
Reporting by Paulina Duran of SYDNEY, Takashi Umekawa of TOKYO, Sumeet Chatterjee and Alun John of HONG KONG, Anshuman Daga of SINGAPORE, Tom Sims and Hans Seidenstuecker of FRANKFURT and Michelle Martin of BERLIN; Writer of Jennifer Hughes ; Editing by Christopher Cushing, Stephen Coates and Edmund Blair