Deutsche Bank AG is preparing to start eliminating hundreds of jobs in its global equity division, the first major cuts in a broader restructuring after the collapse of merger talks with rival Commerzbank AG.
The German lender is finalizing a plan to cuts jobs in equities trading and research, as well as in derivatives trading, the people said, asking not to be identified as the matter is private. The bank will likely start informing staff — including in the U.S. and Asia — as early as next week, they said.
The cuts mark Chief Executive Officer Christian Sewing’s most decisive steps since breaking off merger talks with Commerzbank in April and add to the 25% reduction in equities-trading headcount he enacted after taking over more last year. The bank has about 1,000 employees in equities, not counting research and support roles, and may cut as many as 20,000 jobs over the coming year and beyond across the firm, the Wall Street Journal reported on Friday.
A spokesman for Deutsche Bank declined to comment. The shares rose as much as 4.9% on Friday, after the lender had passed the Federal Reserves annual stress tests, and were trading 3.6% higher as of 4:58 p.m. in Frankfurt.
Sewing told investors late last month that he’s targeting a round of “tough cutbacks” to the investment banking division after a long series of previous turnaround plans failed to deliver. In addition to deep cuts to the equities business, the bank is also working on a restructuring plan that will see the bank create a non-core unit designed to house unwanted assets for wind-down or sale, people familiar with the matter have said earlier.