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Deutsche Bank could slash up to 20,000 jobs

Banking giant Deutsche Bank is considering slashing more than a fifth of its workforce, according to media reports.

Published: 1 July 2019 14:22 CEST
Deutsche Bank could slash up to 20,000 jobs
Deutsche Bank chairman Christian Sewing at the AGM in May. Photo: DPA.

The banking giant's supervisory board could meet as soon as Sunday to decide on the “tough cuts” set to hit the business, daily Frankfurter Allgemeine Zeitung reported Monday without naming a source.

The cuts are part of the lender's restructuring programme. Chief executive Christian Sewing dangled the prospect of layoffs at Deutsche's annual general meeting in May.

Several media reported that up to 20,000 jobs could be on the chopping block, out of the total 91,500 staff. 

READ ALSO: Deutsche Bank to cut more than 7,000 jobs over profitability

However, the decision hasn’t been formally adopted yet and the number may yet change, they said.

Top of the list for cuts is the investment bank. Once the flagship division of the group, the 37,000-strong unit has been undermined by scandal for years.

Shares in Germany's biggest lender rose Monday, as investors reacted to the multiple press reports detailing how the financial firm plans thousands of layoffs in its battle to escape a years-long malaise.

By 1:15 pm in Frankfurt, Deutsche stock had added 1.6 percent at €6.89, against a DAX index of blue-chip German shares up 1.2 percent.

Deutsche is doing “better than other European banks on Monday,” said MM Warburg analyst Andreas Plaesier, drawing a connection to the hints about its future that have trickled out in recent days.

Staff let go

Last year, one-quarter of its stocks trading staff in the US were let go, and a source close to the bank told AFP more such steps could be coming.

Sharp reductions in the payroll were feared earlier this year when Deutsche entered detailed talks on a potential merger with hometown rival Commerzbank but the deal fell through in April.

At the top of the bank, a board reshuffle could also be on the cards according to press reports, with investment banking chief Garth Ritchie reportedly slated to leave.

Away from staffing questions, as Deutsche looks to tidy up its balance sheet it could dispose of up to 50 billion euros of loans and other assets seen as non-strategic, the Financial Times reported recently.

Deutsche shares had already benefited last Friday from its American division's success in banking stress tests by the US Federal Reserve, a result hailed by Sewing in a letter to employees.

Looking ahead, the firm will unveil its second-quarter results on July 24th.

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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.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
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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