Deutsche Bank’s job cuts program has been plastered across the financial press for the past couple of weeks now. Little has been said, however, about how firms that work with the German lender will be affected.
But a new report from analysts at Credit Suisse has given some insights into how the company’s cost-cutting operations will impact its partners.
According to a Reuters report, executives at the Swiss investment bank have estimated that Deutsche Bank’s actions will put a dent in FactSet’s revenue for the 2020 fiscal year.
A data provider to financial services firms, FactSet provided solutions to the German bank’s equity research teams in both Europe and North America.
The ties to Deutsche Bank’s equities division are particularly significant as the firm said on Sunday that it would be scrapping that part of its business.
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That move comes as part of a wider restructuring effort on the part of the bank, which will see it cutting 18,000 jobs from its investment banking division. Deutsche Bank says the cuts will save it $8.3 billion a year.
In their report, Credit Suisse’s analysts estimated that there would be a 5 percent decrease in FactSet’s earnings per share for the 2020 fiscal year.
News of the revenue downgrade saw the data provider’s share price fall by just over 2 percent.