“It’s Going To Be Carnage” – Deutsche Begins Culling 18,000 Employees(Source Zero hedge)
Some readers might have dismissed warnings of “Lehman-style” scenes outside Deutsche Bank’s global offices as hysteria related to the bank’s restructuring. But the mass firings that will eventually cull some 18,000 employees, roughly 20% of the bank’s global workforce, have already begun. After announcing the bank’s most radical restructuring plan in two decades, CEO Christian Sewing on Sunday revealed that the bank would immediately move ahead with the steep job cuts.
On Monday, whole teams of equity traders in Tokyo and the bank’s other Asian offices were let go, the first step toward winding down the bank’s equities sales and trading operation.
The bank is also planning cutbacks to its fixed income, and rates, trading business. Shares bounced in pre-market trading on Sunday, but have since turned lower; in recent trade, DB shares were off nearly 2%.
Though DB didn’t disclose the regional breakdown of the job cuts, it’s widely believed that roughly 50% of the employees in its bloated investment bank will be let go. That would mean the bank’s offices in New York and London will be the hardest hit.