Dublin Deutsche Bank staff fear job cuts
The 400 staff in the Deutsche Bank Dublin-based offices have not been offered any guarantee that cuts would not take place in its Irish arm.
It has been revealed that the bank would reduce its workforce by approximately 9,000 full-time equivalent positions plus approximately 6,000 external contractor positions in its global technology & operations infrastructure function.
One of the two businesses that Deutsche Bank has in Ireland is global business services, which falls under the umbrella of global technology and operations, a sector that it intends to cut.
The bank has yet to give a breakdown of where the job cuts would take place and they also would not say when it would be revealed.
However, in a statement yesterday, newly-appointed co-ceo John Cryan said that it would close onshore operations in 10 countries: Argentina, Chile, Mexico, Peru, Uruguay, Denmark, Finland, Norway, Malta and New Zealand.
The cuts are being made as part of Strategy 2020, a new plan implemented by the bank to turn around its long-term performance.
“In April, we announced Strategy 2020. Since joining the management board in July, I have been working together with my colleagues to draw up plans to stabilise the bank and to turn around its long-term performance. Now, it’s all about executing on our plans to build a better Deutsche Bank.
“Sadly, this also means closing some of our branches and country locations, and reducing some of our front-office and infrastructure staff too. This is never an easy task, and we will not do so lightly. I promise that we will take great care in this process, moving forward together with our workers’ representatives.”
According to the statement on Strategy 2020, the bank’s cost-cutting measures to make the business simpler and more efficient will end up saving €3.8bn, However, associated restructuring and severance costs will be between €3bn and €3.5bn.
It also said that in the next two years it would dispose of assets with a total cost base of €4bn.
As part of the strategy the bank is also going to look at its organisation structures. This is said to be in a bid to increase individual accountability and to reduce its reliance on committees.
In doing this the bank have abolished its group executive committee and also announced a reduction in its management board committee, dropping from 16 down to six.
