Deutsche Bank has been shedding executives in its Asian investment banking division over the past six months. That’s according to a report published by Bloomberg on Wednesday.
The report claims that the German banking giant has seen close to 50 bankers depart from its offices in Singapore and Hong Kong in the last half year.
To cover for those losses, Deutsche Bank has brought in 35 new employees, but they are mostly more junior than their predecessors.
Some of those that departed from the Hong Kong and Singapore offices were actually let go by the bank, as opposed to leaving by their own volition.
Deutsche Bank – Forced to Make Cuts
That would fit in with a broader pattern of cuts that Deutsche Bank has been making to its operations across the globe.
The company’s Chief Executive Officer, Christian Sewing, has been struggling to prevent revenues from slipping downwards and the investment banking division has been a focal point for his cost-cutting efforts.
In the six months ending in September of 2018, Deutsche Bank lost 1,000 front office employees in its investment and corporate banking teams.
As with its Asian division, the firm has been attempting to replace those people with less experienced workers, focusing on bringing in graduates instead of senior executives.
But for those that left via their own choosing, there seems to have been something of a morale problem at the German bank.
According to Bloomberg, former employees found both the cuts and the bank’s falling stock price a negative influence in their work.
A series of scandals also affected those employees. Back in November, the company’s offices were raided in connection with a series of money laundering allegations stemming from the Panama Papers scandal.
The bank has also been racked by fresh allegations of money laundering in the past couple of months, with a whistle-blower from Danske Bank’s Estonian division saying in mid-November that Deutsche Bank helped facilitate $150 billion in suspicious payments.
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