Deutsche Bank has been in a state of flux in 2016, having embarked on an ambitious cost-cutting strategy that has seen the lender jettison thousands of back office, IT and trading jobs. Its latest cuts extend however extend beyond its own personnel, which now reportedly includes the loss of 3,400 trading clients, according to a Reuters report.
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A little over a year ago, Deutsche Bank initially unveiled one of the more wide ranging strategies relative to the rest of the industry, opting to part ways with upwards of 35,000 workers over the next few years. Faced with sagging revenues and a loss of profitability across many of its business segments, John Cryan, the bank’s CEO, has repeatedly doubled down on cost-cutting strategies, with the deepest losses felt in London.
In its latest cuts, Deutsche Bank’s Global Markets division will cut approximately 3,400 clients in its debt and equities sales activities. This will also see the cessation of debt sales services to select financial institutions and hedge funds, among other segments. The idea behind the move is to shed clients that cost more to the lender, helping stimulate its capital and profits.
Speaking previously at a strategy presentation back in 2015, Mr. Cryan stated: “We expect to off-board about half of the current list of clients as the economic returns in these relationships are inadequate to us.”