- Firm has pulled out of most commodity trading since late 2013
- Germany accounts for about 44% of bank's net staff reduction
Deutsche Bank AG plans to eliminate jobs at its German power-trading business as co-Chief Executive Officer John Cryan seeks to cut costs across Europe’s largest investment bank, according to a person with knowledge of the matter.
Three client-facing positions and about 10 roles in the back office may be eliminated, said the person, who asked not to be identified because the matter is private. The bank’s management has told labor representatives that it plans to cut 40 jobs at its German investment banking and trading unit, said the person.
Cryan, 54, who took over from Anshu Jain in July, is under pressure to shrink trading divisions, shore up profitability and reverse a share slump that has made the bank the worst-valued stock among global lenders. Deutsche Bank has already exited most of its commodities businesses over the last two years as regulators demand higher capital buffers against risky assets.
Axel Luedeke, a spokesman for Deutsche Bank in Frankfurt, declined to comment. Germany’s Handelsblatt reported the number of possible job cuts at the investment bank earlier on Wednesday.
Deutsche Bank said last month it plans to cut about 9,000 jobs on a net basis by the end of 2018, with about 4,000 of those in its home market. Germany accounted for 45,921 of Deutsche Bank’s 100,407 staff at the end of September, company filings show.
The company will cut 5,000 jobs in Germany on a gross basis, including about 3,200 out of more than 12,000 positions at its unit catering to consumers and small- and medium-sized businesses, Handelsblatt said, citing a letter from Deutsche Bank’s management to labor representatives.
Deutsche Bank shares have dropped 7.2 percent over the past year.