Jan. 16 (Bloomberg) -- Deutsche Bank AG, Germany's biggest bank, is eliminating 250 to 300 jobs in its global markets division, according to a person with knowledge of the reduction.

The staff cuts, which began this week, are across the unit run by Anshu Jain, including equity sales and trading, debt capital markets and derivatives, said the person, who declined to be identified. The division is making ``some adjustments to individual business lines to refocus resources towards areas with the greatest growth potential,'' London-based spokeswoman Michelle Gathercole said, without giving further details.

Chief Executive Officer Josef Ackermann said this week that the U.S. housing crisis sparked by last year's surge in U.S. subprime mortgage defaults may not be over and banks may have to report further writedowns. The Frankfurt-based company has announced about 2.28 billion euros ($3.3 billion) in markdowns and trading losses because of the debt market slump.

``There are areas where the markets have shut down and won't come back for a year or more, if ever,'' including the securitization and collateralized debt markets, said London- based Societe Generale SA analyst Alan Webborn, who recommends shareholders sell the stock. ``It will be a common factor over all investment banks in the next three to six months.''

Positions at Deutsche Bank in London, New York, continental Europe and Asia will be affected, the person said, declining to be identified because details have not been made public.

Citigroup, UBS Cuts

Citigroup Inc., the biggest U.S. bank, said yesterday it will eliminate at least 4,200 jobs after posting a record $9.83 billion loss. The latest cuts, scheduled to take place this month, are mostly in the New York-based company's trading and investment-banking division, which posted a fourth-quarter loss of $11 billion after earning $1.75 billion a year earlier.

Zurich-based UBS AG, the biggest European bank by assets, said on Oct. 1 it would cut 1,500 jobs after reducing the value of fixed-income securities by more than 4 billion Swiss francs ($3.6 billion).

Deutsche Bank has fallen 21 percent in Frankfurt trading in the past year, valuing the company at 43.6 billion euros. That compares to the 26 percent decline of the Bloomberg Europe Banks and Financial Services Index. The company is scheduled to report full-year earnings on Feb. 7.

Deutsche Bank said Oct. 31 that third-quarter net income climbed to 1.62 billion euros. The securities unit, run by Jain and global banking head Michael Cohrs, recorded a loss of 179 million euros in the quarter, the first in five years, after earning 1.03 billion euros a year earlier. The unit had more than 13,000 employees at the end of September.

Ackermann said in September the bank would scale back plans to increase its workforce by about 6 percent after ``mistakes'' during the credit boom. He didn't expect job cuts.

To contact the reporter on this story: Neil Unmack in London at nunmack@bloomberg.net

Last Updated: January 16, 2008 14:06 EST