The handwriting was clearly on the wall at Frankfurt, Germany-based Deutsche Bank, the global investment bank and financial services company. The bank has a troubled history that has just been elevated by domestic and foreign regulatory agencies.
In our post last year (June 4, 2018) we noted, “There should be absolutely no surprise when Deutsche Bank announces a mass layoff of up to 10,000 employees, thousands of whom are operating in the United States.”
Since then the bank has continued to struggle and has just announced the commencement of restructuring activities which include withdrawing from the global equities business and reducing their headcount by an estimated 18,000 employees across the globe; with many of the remaining functions being taken over by automation.
According to the company’s announcement (which can be accessed here) …
Christian Sewing, Chief Executive Officer of Deutsche Bank, said:
“Today we have announced the most fundamental transformation of Deutsche Bank in decades. We are tackling what is necessary to unleash our true potential: our business model, costs, capital and the management team. We are building on our strengths. This is a restart for Deutsche Bank – for the long-term benefit of our clients, employees, investors and society.”
“In refocusing the bank around our clients, we are returning to our roots and to what once made us one of the leading banks in the world. We remain committed to our global network and will help companies to grow and provide private and institutional clients with the best solutions and advice for their respective needs – in Germany, Europe and around the globe. We are determined to generate long-term, sustainable returns for shareholders and restore the reputation of Deutsche Bank.”
Paul Achleitner, Chairman of the Supervisory Board of Deutsche Bank, said:
“This fundamental transformation is the right response to the major changes and challenges in the financial industry. Deutsche Bank has been through a difficult period over the past decade, but with this new strategy in place we now have every reason to look forward with confidence and optimism. We have a talented and dedicated team at the helm to relentlessly execute what we promise today and to create a sustainably profitable bank. Our shareholders have supported our bank’s restructuring for years and that’s why a substantial return of capital over time is an important part of our new strategy.”
More than those directly affected affected are the employees of firms doing business with the bank as contractors, vendors, or associates.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?