Deutsche Bank axes whole teams in Asia-Pacific as 18,000 job cuts begin
Deutsche Bank (DE:DBKGn) shares rose in pre-market trade on Monday as the German lender eliminated whole teams at its Asian operations, starting to ax 18,000 jobs globally in one of the biggest overhauls at an investment bank since the aftermath of the financial crisis.
Shares in Deutsche Bank were indicated to open 5.2% higher at 0548 GMT, according to pre-market data from brokerage Lang & Schwarz.
The lender announced the job losses on Sunday as part of a restructuring plan that will ultimately cost 7.4 billion euros ($8.3 billion) and see it undo years of work aimed at making its investment bank a significant force on Wall Street.
Deutsche Bank gave no geographic breakdown for the job cuts, though the bulk is widely expected to fall in Europe and the United States. The global day on Monday, however, began with cuts in Sydney, Hong Kong and elsewhere in the Asia-Pacific.
Entire teams in sales and trading are losing their jobs too, according to several Deutsche bankers.
As part of the overhaul, the bank will scrap its global equities business and cut some operations in its fixed income - an area traditionally regarded as one of its strengths.
Its investment banking team for the Asia-Pacific region numbered about 300 people before the cuts, of which 10% to 15% will be laid off, almost all in its equity capital markets division, according to a senior Asia banker with direct knowledge of the plans.
Deutsche had some 4,700 staff at its main regional offices in Sydney, Tokyo, Hong Kong, and Singapore, showed factsheets on its website.