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Study: banks expect bad luck in 2013

The majority of German banks expect 2013 to be a difficult year marked by job cuts and a further slowdown in the investment banking market, a ratings agency study released suggested on Monday.

Study: banks expect bad luck in 2013
Photo: DPA

Fourty two percent of German banks are planning or intending to cut staff – especially in administration departments – said the study from ratings agency Ernst & Young presented on Monday in Frankfurt am Main.

Coming just days after rumors abounded in the German press that Commerzbank was planning to cut up to 6,500 jobs – 18 percent of its workforce.

Just 18 percent of German banks, by contrast, said they wanted to employ more people.

“There are some lean years up ahead for banks,” said Claus-Peter Wagner of Ernst & Young on Monday. “That’s why the coming months will be marked by reconstructions, cost reductions and risk minimizing.”

Half of banks said that they expected the German domestic market to shrink in the coming months. One quarter said they expected their own firm’s situation to improve over the next year, with the majority – 40 percent – fearing it would get worse.

The continuing sovereign debt crisis in Europe and the increasing costs of growing regulation were further grounds for pessimism in 2013. Investment banking and related areas – bond or share issuing – would shrink further this year, predicted many banks.

Meanwhile, classic banking services with private individuals and business customers is said to be backing a comeback in the crisis.

Fifty German banks took part in the survey, which tested the waters with 269 banks across Western Europe and Scandinavia.

Europe-wide, the banks’ prognoses for 2013 looked even bleaker – 45 percent of banks said they wanted to cut jobs and just 21 percent said they intended to extend their workforces.

DAPD/The Local/jlb

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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