21.2 C
New York

Deutsche Bank lays off bankers as dealmaking dries up: sources


Deutsche Bank axed greater than 20 junior bankers in addition to a handful of senior employees this week as dealmaking activity dries up and the German lender prepares for a possible downturn, The Post has learned.

The Tuesday layoffs of staff based in Recent York were concentrated within the bank’s advisory group, which advises corporations about prospective mergers and acquisitions, and origination, which offers loans particularly for mortgages, sources told The Post.

Unlike Goldman Sachs, Deutsche culled a handful of underperformers throughout the pandemic so bankers have faced some targeted layoffs. Advisory and origination have been hit hardest as investment banking revenue falls as much as 50% across the industry.

But the newest round of cuts represents a belt-tightening that hasn’t been seen in years, sources told The Post. For a younger generation of bankers, it was the primary time many have faced layoffs.

“This was a proactive effort to rein things in,” the insider told The Post. “This can be a repositioning for where the bank is — it’s about aligning with the market.”

“There was an actual shock factor with this round of layoffs,” the insider added. “There are such a lot of individuals who have never been through a downturn.”

Deutsche Bank is one among the primary banks to put off bankers within the downturn.AFP via Getty Images

Although just a few higher level employees — including several managing directors — were affected, the bank is much more cautious about shedding senior executives.

“It takes 15 years to make a managing director and when the market turns again you would like that capability to ramp up again,” an insider told The Post.

While Deutsche is among the many first banks to start out cutting people proactively because the economy stagnates, it definitely won’t be the last. Some at Deutsche consider this will likely just be the primary round of layoffs.

“If we get to the top of February and the economy isn’t nearly as good as we hoped, there could have to be additional actions,” the source added.

Deutsche Bank declined comment. The bank will report third quarter earnings next week.

Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles


Recent articles