The Strategist

Deutsche Bank announces massive layoffs of traders

09/09/2019 - 07:45

The layoffs affected the fixed income securities division.

Tony Webster via flickr
Tony Webster via flickr
Deutsche Bank's restructuring has reached a fixed income securities division, Bloomberg reports. According to the publication, the credit institution is downsizing dozens of traders and other employees.

The new measures will affect departments involved in highly profitable assets, as well as troubled debts and investments in New York and other cities, as well as in branches around the world.

According to the publication, citing its own sources, the layoffs are connected, in particular, with the low efficiency of some units. For example, the bank completely is liquidating the credit business in Latin America.

Deutsche Bank is carrying out a restructuring, during which it is planned to reduce 18 thousand jobs in all branches of the organization. Thus, the management of the bank is trying to overcome the crisis associated with falling profits.

Getting rid of traders has become a mass phenomenon. One of the main reasons for this decision is customer caution regarding the purchase of shares. Investors are frightened by the trade war between the US and China and do not want to make transactions, especially since stock indices are at historic highs. In addition, robots are increasingly replacing people in this area.