Amid a slew of job cuts, Deutsche Bank AG isn’t finished, with the German lender to cut dozens of traders and salespeople in its global fixed-income ranks, according to a report from Bloomberg.
The top German lender has been struggling to retain profitability for years, and it continues curtailing its activity at the investment bank. So far, the fixed-income unit at the bank has been largely spared from the first round of reductions. As Finance Magnates reported in July, the German firm revealed that it was cutting close to 18,000 jobs, overall.
However, according to people familiar with the matter, who spoke to the news outlet and asked to remain anonymous, Deutsche has let go of traders in high yield, distressed and investment-grade debt teams in both New York and abroad.
According to one of the sources, the reductions follow on from underperformance in some of the divisions. This includes the credit business in Latin America, which is being eliminated entirely.
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The job losses in the fixed-income unit do not come as a complete surprise. As we previously analyzed, Deutsche Bank was looking to cut staff in its equities and fixed income units.
In July, Deutsche Bank said in a statement that it plans to reduce the amount of capital used by its Fixed-Income Sales & Trading business, in particular, Rates. The company’s FX prime brokerage business is instead set for a boost.
Deutsche Bank cuts
Already, the German bank has lost senior staff in its fixed-income department. This includes John Pipilis, who led the unit globally, and Paul Huchro, a credit trading executive who was reported to have left the firm this week.
In its Latina America unit, the managing directors Eric Eisner and Paul Delaney will depart the lender as part of the job cuts. In addition, Timothy Fischer in leveraged credit sales, and Andrew Meany in credit trading are also set to leave, according to the report.