Deutsche Bank has introduced a hiring freeze as it seeks to cut costs amid a deep strategic overhaul, according to a Reuters report today.
The German lender reportedly sent a memo to managers on the hiring freeze, which does not include the bank’s compliance department.
Deutsche Bank’s management is working frantically on restoring investor confidence by speeding up a series of cost-cutting measures following a US Department of Justice (DoJ) demand to pay up to $14 billion for the misselling of mortgage securities before the financial crisis.
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
Earlier this week, Finance Magnates reported that Deutsche Bank shares tumbled after Chief Executive John Cryan failed to secure a speedy deal with the DoJ.
The bank has meanwhile been working on an ongoing headcount reduction plan.
Less than two months ago, Cryan reiterated his stance on more cuts, which echoed a previous statement in July that backed additional cost cutting measures.
The news was not welcomed by Deutsche Bank employees, who have already survived a wave of job cuts and scaling measures across the company’s global operations. As far back as October 2015, Deutsche Bank embarked on a plan to reduce upwards of 35,000 workers worldwide.
Cryan at the time expressed some optimism that Deutsche Bank had been making progress on restructuring, but recent earnings and revenues cast a shadow over these efforts. After today’s news, it seems that any potential hiring spree at Deutsche Bank has been put on hold.