Deutsche Bank plans to cut around 800 senior back-office staff

Per Bloomberg

Deutsche Bank is now one of the latest major companies to lay off staff. The bank noted that it would let go of around 800 senior back-office positions.

This is part of the bank's larger efforts to reduce costs amid its trading business slowdown. Deutsche Bank CEO Christian Sewing said that one of the company's moves to reduce costs was to let go of staff.

This came as the bank reported a 17% drop in revenue from its fixed-income trading, which was one of its worst performances so far. However, this decline was offset by Deutsche Bank's "35% jump in revenue."

The bank's decision to let go of 800 workers could result in it saving an annual $553 million by 2025. The company said that it would also record around the same amount as severance for the staff it'll let go.

Deutsche Bank is also dropping one member of its management board, dropping it to just nine members from its previous ten. This would result in Christiana Riley, the Americas board head, leaving, resulting in James von Moltke, the company CFO, taking responsibility for the asset management arm.

Recently, Dropbox announced that it would also let go of staff, saying that 16% of its workforce would be out of jobs. In the company's explanation of why they were letting go of workers, they mentioned the slowdown of growth and AI.

Another company, Stellantis, is also expected to let go of jobs. The company is expected to eliminate 3,500 hourly jobs ahead of the expiration of a contract with the United Auto Workers.

The UAW received a letter with two incentive packages, the first being $50,000 for those hired before 2007 and the second being lumpsum for workers that had at least a year of seniority.

See flow at unusualwhales.com/flow.

Other News:

Resources:

Bloomberg