Deutsche Bank’s 2017 strategy looks remarkably similar to its 2016 one, favoring job cuts across one of its lagging sectors to help stimulate revenues and profits.
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Its latest round of cuts are focused on its equities space, which is expected to lose as much as 17 percent of its equities staff and 6 percent of its fixed-income staff globally, according to a Wall Street Journal report.
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Back in December, Deutsche Bank shot down rumors surrounding its capital strength, after a US settlement worth $7.2 billion. Subsequently, the group reiterated that its credit rating and its ability to operate in the United States were unaffected.
Concerns were originally raised after a potential weakening of the bank’s ability to pay coupons on some of its bonds. No European lender has been under more pressure than Deutsche Bank over the past year, as it has been haemorrhaging staff since first embarking on an aggressive cost-cutting strategy back in 2015.
European banks have been gradually shifting personnel out of London and other locations due to labor costs, most commonly to Southeast Asia. However, Deutsche Bank’s recent round of cuts will affect its business globally.
Previously, the vast majority of jobs on the chopping block were IT or back office roles, though trading desks in the fixed income and foreign exchange space have also been hit.