The Deutsche Bank AG has a plan to reduce its operations in the United States according to sources who have bene quoted in the media, and as a part of that plan, the lender is set to lay off dozens of its employees and is to and consolidate its space at its Chicago office.
The media reported quoting the sources who asked not to be identified discussing personnel matters that the German bank would be reducing the number of people working at its Chicago office which is home to a number of units of the lender including its front-office trading, operations and treasury units. Sources also said that some of the employees associated with the operations unit are being asked to choose between getting laid off from work or getting agreeing to work for the bank at its Jacksonville, Florida, office.
Troy Gravitt, a spokesman for the bank, declined to comment on the firm’s plans for the office, when contacted by the media. Operations functions that are housed at the Chicago office include those that are offered for the listed derivatives and supporting trading at the Chicago Mercantile Exchange and Chicago Board of Trade. The layoff decision of the bank will not impact the employees linked to its corporate finance and corporate banking teams and those employees would continue to maintain a sizeable presence in the city.
Scaling back of its US operations was announced by the bank earlier in the year which is part of the efforts of the new Chief Executive Officer of the bank Christian Sewing to retrench after several years of the bank coping with a number of scandals and poor performance. According to the plans of the bank, as much as 20 per cent of the total employee strength of the firm in the US would be retrenched and the bank also has drawn up plans for the reduction of its rates sales and trading business in the North American region.
In May, the bank had announced that it would relocate its head office in New York from Wall Street to Midtown and reducing about 30 per cent of its footprint in the city in the process. At the same time the firm had also announced the closure of the Houston office. According to the comments of a senior executive of the bank at that point in time as quoted by the media, the presence of the bank in the cities of New York, San Francisco and Chicago was viewed by the firm to be indispensable for its corporate-finance units.
This year, there has bene a fall of 33 per cent in the stocks of Deutsche Bank in Frankfurt trading. There has however been an 11 per cent rise in its share in the last two weeks following the bank releasing its second-quarter earnings which notched up higher figures than were expected by the market.
(Adapted from Fortune.com)