Initially, investors responded positively to the news of a significantly more brutal round of field surgery. The share price even rose in early trading. But then the penny dropped.
By Frances Coppola and cross-posted from Forbes
Deutsche Bank didn’t waste any time getting to work with the hatchet. On Sunday, July 7, it announced 18,000 job losses worldwide, the complete closure of its equities trading division and significant cuts to fixed income and rates businesses. On Monday, July 8, the cuts began. As London and New York slept, blissfully unaware of what was to come, the bank was already sacking entire teams in Sydney and Hong Kong.
The carnage continued throughout the day. In London, people arrived at work only to be handed documents formally notifying them that they are “at risk” of redundancy and sent home. A stream of workers left Deutsche Bank’s London office carrying bags and boxes containing personal effects from their desks. Others headed for the pub to drown their sorrows. Some were tearful, others shocked and confused. Some workers didn’t bother to turn up for work at all, correctly concluding that there was little point after hearing the announcement the previous day.
In New York, staff were summoned to meetings in which they were dismissed en masse. By mid-morning, according to Business Insider, there was a constant stream of people leaving the office.
The outlook for many of the terminated staff is grim, particularly in the U.K. where Brexit uncertainty is casting a considerable shadow. Not that anyone outside the finance industry cares, much…