Deutsche Bank AG (DBK)’s Koichiro Yasuda, the head of corporate finance investment banking in Japan, resigned as the German bank cut about 20 jobs in Tokyo, two people with knowledge of the matter said.
Deutsche Bank, based in Frankfurt, yesterday told investment banking staff in Tokyo, including at least three managing directors, that their positions were being eliminated, said the people, who declined to be identified as the matter is confidential. The global banking team in Japan employed about 70 people before the reductions, the people said.
Germany’s biggest lender is reducing costs globally as earnings prospects worsen and Europe’s debt crisis intensifies. The firm plans to reduce its headcount by around 500 positions at its corporate banking and securities unit, primarily outside Germany, by March 31, the bank said on Oct. 4.
“The contagion from Europe is spreading to Japan and the rest of Asia,” said Katsunobu Komizo, chief executive officer at recruitment firm Executive Search Partners Co. in Tokyo. “More job cuts are likely as Asia’s economy may be hurt when European banks stop lending and sell non-core business units.”
Aston Bridgman, a Tokyo-based spokesman for Deutsche Bank’s brokerage unit in Japan, declined to comment. Yasuda wasn’t available in three calls made to the bank’s offices.
Deutsche Bank’s brokerage unit in Japan, which employs 906 people, swung to a loss of 50.3 billion yen ($647 million) for the year ended March 31, compared with a profit of 2.3 billion yen a year earlier, according to its financial statement.
Deutsche Bank follows other overseas and Japanese brokerages in cutting jobs in the country. Mitsubishi UFJ Morgan Stanley (MS) Co. plans to quadruple job cuts to about 1,300 in Japan. Mizuho Securities Co. (8606) will eliminate about 700 jobs, or 10 percent of its workforce, the brokerage said in October.
Nomura Holdings Inc. (8604), Japan’s largest brokerage, began local reductions last month. It notified about 15 employees in Tokyo, who worked at equity-related businesses in the global markets division, that their jobs will be eliminated. Zurich- based UBS AG (UBSN) and Credit Suisse Group AG (CSGN) are also reducing headcount in Tokyo.
Deutsche Bank jumped to Japan’s No. 3 financial adviser for mergers and acquisitions this year from ninth last year, helped by advising Takeda Pharmaceutical Co.’s acquisition of Nycomed, data compiled by Bloomberg show. The bank is ranked 10th in equity underwriting this year in Japan, up from 11th.
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