The leading German investment bank, The Deutsche Bank, has announced to cut some 20,000 jobs. The bank is aiming to reshuffle and reorganize in times of recession courtesy of lack of investments. London and New York will bear the brunt of job cuts, the most. The supervisory board is expected to finalize and announce the decision of Sunday.
The decision came after Deutsche and Commerzbank abandoned merger talks. The German government supported the tie-up, but the decision-makers and the stakeholders decided against it. The costs of the merge would escalate beyond the benefits. The government of Germany owns 15.3% shares of Commerzbank and was ready to line it up with Deutsche, but wasn’t found compatible and cost-effective.
Deutsche bank plans job cuts
The Deutsche bank is finding it difficult to recover from the decline in the investment bank. The decision of job cut is basically in pursuit of trying to find a balance between the input requirements, the recession, and the outcomes.
The bank, apart from financial restraints, has been prone to banking scandals. The prosecutors raided the headquarters of Deutsche Bank, for alleged connectivity to money-laundering. The bank has also been involved in some sort of a suspicious activity pertaining to Estonian transactions with the Danske bank of Denmark.
The recent job cuts in meant to reorganize and reintegrate the split and divide as a result of some of the incidents highlighted above. London bores some 8.000 Deutsche bank employees and is expected to suffer the most in terms of job cuts.
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