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Deutsche Bank axes whole teams in Asia-Pacific as job cuts begin
- pojzon 7y agoIm really interested how this will evolve. DBank has alot of assets in other banks in my country. Curious what it means for them. Should I jump the ship and switch ?
- ThePadawan 7y agoGood.
- dang 7y agoPlease don't do this here.
- cletus 7y agoSo I've become pretty cynical about companies announcing layoffs. In the short term, it'll boost the stock and make the CEO look good as a result. The net effect will be: - A certain number of people who leave or retire won't be replaced - Some workers will get relocated geographically and/or within the company's business units such that they'll be counted as a layoff and a new hire - New hiring won't stop - The company will use layoffs as a means of getting rid of a number of workers that would otherwise be legally problematic to get rid of (eg older or pregnant workers) - Some smaller teams, projects or divisions will be sold off to other companies Hiring is near constant. Layoffs happen in bursts. Combine this with natural attrition and not much has changed. Overall staffing levels will continue trending downward slightly with increased automation. Business as usual.
- wp381640 7y agoyour comment has no relation to what is happening at DB - they're writing down $73 billion in assets and exiting businesses they tried to expand into
- cletus 7y agoIt's entirely relevant. When I said layoffs happen in bursts, what do you think that means? It means, for a time, you stop doing something you used to do. But as time goes on you'll find new things to do. Some of those will hopefully work out. Others won't. Rinse and repeat.
- cm2187 7y agoFor the avoidance of doubt, they are not writing down $73 billions of assets, that would wipe out their whole capital base. They intend to sell or roll off $73 billions worth of RWAs.
- pcurve 7y agoI-banking and trading divisions are getting gutted. One would think there are money to be made there and most banks aren’t following suit. Sounds like leadership failure to me.
- pgeorgi 7y agoThere's money to be made there, and they made a lot of money, so much that the company stopped caring about the other divisions - until they didn't, and it started to cost them tons of money in lawsuits. Yes, a different management approach might have avoided the lawsuits and everything, but apparently this level of risk taking is not in the DNA of the bank and so they stop doing that. In my opinion restricting themselves to the part of the business they understand to get back to a clean slate is one of the smartest ideas they had in the last ~20 years.
- 0898 7y agoMatt Levine was saying last week that everybody at DB has been expecting these cuts for ages: https://www.bloomberg.com/amp/opinion/articles/2019-07-02/it-s-no-fun-at-deutsche-bank https://www.bloomberg.com/amp/opinion/articles/2019-07-02/it...
- my_usernam3 7y agoThanks for posting this, and I might have to start reading more of Matt Levine. However, I don't know where you get "ages" from. He never mentions how long this has been going on. In fact I read it more as a news story where he is reporting a more recent development. Edit: He does say "Executives in New York have for more than a year worked under the cloud of whether the U.S. operation would be sold, gutted or spun off.", but executives tend to try to hide negative truths from the majority of employees for as long as possible.
- 0898 7y agoMatt Levine is my favourite writer at the moment. I love his simple, whimsical style.
- rorykoehler 7y agoI know someone who used to work there and their department was continually being downsized with rumours circling of complete shutdown even 3 years ago.
- jonas_kgomo 7y agoThis is happening while most anticipate AI taking jobs. I wonder how this will turn out as more jobs are being automated with human-assisted downsizing
- soVeryTired 7y agoThis is nothing to do with AI. It's to do with Deutsche's shady accounting and refusal to take government money during the global financial crisis.
- VvR-Ox 7y agoHate me for this but: It's ok. We don't need all those bankers and if we'd manage to manage our finances better as a world we wouldn't even need those jobs and a lot of these institutions.
- deleted 7y ago[deleted]
- navigatesol 7y ago>if we'd manage to manage our finances better Pray tell, what does this mean?
- darkteflon 7y agoIt’s sort of weird to see this stuff on HN. There’s another top article atm on Japan machine orders. These articles are clickbait noise with zero informational value - or worse.
- dintech 7y agoDeutsche employs tens of thousands of software engineers. I think it's relevant.
- mcv 7y agoWill they also be axing the people involved in money laundering?
- aussiegreenie 7y agoWhy kill the Golden Goose? Money laundering was DB most important Division.
- markus_zhang 7y agoI'm curious how they are going to unwind the massive derivative portfolio...
- rv-de 7y agoI'm not sure if there are enough oysters to be caught and cocktails to be mixed for all those budding oyster fishermen and barkeepers - I mean seriously those bankers are quite useless anywhere outside their finance bubble. Anyway, strip clubs and coke dealers are already worried about customers breaking away. [1] Source: 1: https://www.der-postillon.com/2019/07/deutsche-bank-18000.html https://www.der-postillon.com/2019/07/deutsche-bank-18000.ht...