Deutsche Bank has announced it is shutting its equities division, potentially leading to job losses from the firm’s base in Sydney.
The firm announced globally today that it would exit global equities and significantly reduce its activities in corporate and investment banking. It would also resize its fixed income operations, particularly the rates division.
Global equities includes equity trading, equity derivatives, global investment solutions and prime finance.
This would allow the firm to focus on its core activities of corporate banking, finance, foreign exchange, origination & advisory, private banking and asset management.
Global chief executive Christian Sewing said: “I am very much aware that in rebuilding our bank, we are making deep cuts. I personally greatly regret the impact that this will have on some of you. In the long-term interest of our bank, however, we have no choice other than to approach this transformation decisively. Only then can we build on our long-standing history and make Deutsche Bank a leading bank once again.”
It is understood around 700 people work at the firm from its Sydney office and it has smaller offices in Melbourne and Perth, having held a presence in Australia for more than 45 years. In total, it employs 19,000 in the Asia-Pacific region.
A spokesperson for Deutsche Bank declined to give regional figures but the Australian Financial Review reported the equities team as numbering 50 employees; 20 analysts, 20 traders and 10 in sales.
The firm had already been cutting its headcount recently, in the 2018 financial year global headcount reduced by 5.9 per cent.