The largest German lender over the weekend had announced shuttering of its global equities business and cutting fixed income operations, which will impact as many as 18,000 jobs globally while help the bank save USD 8.3 billion annually.
Deutsche Bank India Tuesday said the decision of the German parent to lay off as many as 18,000 employees globally will have an impact here as well, but declined to quantify the number of employees who will be hit.
The largest German lender over the weekend had announced shuttering of its global equities business and cutting fixed income operations, which will impact as many as 18,000 jobs globally while help the bank save USD 8.3 billion annually. “The equity desk will be shut for sure in India as well. There is no ambiguity around it. This has jobs in trading, research and sales,” a source told PTI.
The situation was described as “fluid” with no clarity on the number of jobs impacted here, or if the impacted employees will be accommodated in other operations of the bank, which has 17 branches in the country. The domestic equity business was termed as “very small” in the global equity business.
According to industry sources, a foreign bank usually employees 25-35 in its institutional equities businesses. However, there can be other employees serving global markets through the its offshore global delivery centres in the country which can also be impacted.
A bank spokesperson todd PTI that “it is too early to comment on the specifics. We will be communicating directly with our employees regarding their jobs and options available to them.” The spokesperson further said such decisions have a “profound” impact on people’s lives. “That is why we will do whatever we can to be as responsible and sensitive as possible when implementing these changes,” the spokesperson said.
Experts said there is a process which will have to be monitored by regulators while undertaking an operation like shutting down a business. The official also drew attention to the capital release unit housing assets worth over 160 billion euros being created.