"Deutsche Bank To Fire Another 10,000 Bankers, Bringing Total Layoffs To 20% Of Workforce"
If Deutsche Bank does go bankrupt then the "house of cards" World's Banking Ponzi System is in danger of collapsing. Just as a slight breeze can cause a house of cards to fall down, the failure of Deutsche Bank could cause our financial system to crash and burn. I suspect they could cut all the jobs and still not cut enough to be solvent.
The hits for Deutsche Bank just keep on coming. One day after a report that the German lender has imposed a hiring freeze in the latest bid to reassure investors that it has expenses under control and is stemming the outflow of cash, moments ago Reuters reported that Deutsche Bank's finance chief told his staff that job cuts at the bank could be double that planned, a step that could remove 10,000 further employees.
Such cuts would likely take many years but setting such a goal could reassure investors that the bank is determined to tackle costs that sources said the European Central Bank sees as bloated. Unless, of course, they are forced to cut much faster. If 10,000 job losses were ultimately to follow the 9,000 announced by management in October 2015, roughly one in five of the bank's workforce around the globe would be affected.
"Schenck said that the bank would need to cut another 10,000 staff to bring down costs," said a person who attended the meeting with the chief financial officer cited by Reuters. Although no such decision has yet been taken, Marcus Schenck's remarks, at an internal meeting, signal the lender is considering further significant cost cuts, as it faces a multi-billion-euro fine and a crisis of confidence among investors.
The discussion about further job cuts comes as Deutsche's chief executive, John Cryan, reassesses a year-old strategy to revive the flagging group, as ebbing market confidence sends its stock price tumbling and prompts some customers to withdraw funds.. A second person familiar with these discussions said the management was also examining the countries where the bank was active to see "whether it was really worth its while (staying in those countries)".
DB's latest announcement follows Commerzbank, Germany's second biggest bank rival, which recently announced it would ax more than a fifth of its workforce - almost 10,000 staff.
Bank picture from Pixabay