In one of the biggest layoffs ever undertaken, anywhere in the world, Deutsche Bank is preparing to terminate whooping 20,000 employees from their payroll.
What is the reason that Germany’s biggest, most influencial banking institution is firing almost one-fifth of the workforce?
This question becomes especially relevant after we came to know that the bank has posted 32% increase in profits for FY2019, in India.
Deutsche Bank Is Firing 20,000 Employees
As you are reading this news, Deutsche Bank’s Chief Executive Officer Christian Sewing is considering to terminate 20,000 or more employees from the bank.
This is a desperate attempt to keep the bank afloat and ensure that the shareholders get their returns, and the bank is able to cut losses.
As per various news sources, the bank is considering to remove the majority of employees from equities trading and research, as well as derivatives trading department, in the coming days.
The bank is all set to reduce the size of U.S. equities business, and keep only a handful of high net worth clients.
Why Are The Employees Getting Fired?
Sinking stock prices seems the most relevant reason right now, for this mass layoff of employees from Deutsche Bank.
In the month of May, the stock prices of Deutsche Bank hit a new low of 6.673 euros, which was even lower than 6.678 euros (December stock rate)
Since the last one odd-year, the stock prices of Deutsche Bank have slipped by 36%, which has worried the investors and the management.
They need to do something drastic, right now.
Reportedly, the biggest impact would be felt in New York and London, where there are more than 40,000 employees of this banking major. This is almost 50% of the overall employees.
Employees have already started packing their bags, and they are all set to make an exit.
Just official confirmation is remaining.
Deutsche Bank Posts 32% Increase In Profits In India
As the news about mass-terminations is looming high, Deutsche Bank has posted a 32% increase in profits in India.
For the FY2019, the bank posted a net profit of Rs 1199 crore, compared to Rs 910 crore posted last year.
Total income has increased from Rs 5,716 crore last year to Rs 6,891 crore this year.
The bank has also increased the volume of loans dispersed: From Rs 39,247 last year, the bank provided loans worth Rs 48,270 crore this financial year.
We will keep you updated, as we receive more news about Deutsche Bank.