Deutsche Bank to axe roughly one in seven traders
FRANKFURT Nov 19 (Reuters) - Deutsche Bank will cut roughly one in seven jobs in its trading business, or about 900 staff, its single biggest reduction to investment banking since the onset of the global financial crisis, sources with knowledge of the matter told Reuters.
The German bank, which had initially managed to duck the worst of the markets storm, is seeing frigid markets sap earnings in what used to be the engine room of its business -- investment banking and trading.
Deutsche Bank (DBKGn.DE) employs around 11,000 investment bankers. Some 7,000 of them are in its global markets or trading business. Most are based in London and New York, and those two locations will be hit hardest by the planned cuts, sources said.
These bankers would typically take a disproprtionately large share of the 13 billion euros ($16 billion) Deutsche paid to its more than 80,000 staff last year.
"There will be huge adjustments to those trading businesses that have stopped working in the crisis," one source told Reuters, adding that the areas of proprietory trading and structured products would be hit.
"We are talking about cuts of about 900 jobs," the source said. Other businesses such as foreign exchange trading will be largely unaffected by the cuts, the source added.
Deutsche Bank declined to comment.
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