After surviving its somewhat existential crisis last year, the world's favorite systemically dangerous bank remains under siege. Right in the wake of missing analysts' earnings expectations, Deutsche Bank (NYSE: DB) is set to announce major job cuts across its trading businesses.
Warnact.com reports that the bank will cut as much as 17 percent of staff in its equities unit and reduce its fixed-income headcount by as much as 6 percent, with notices to be served to employees soon, a bank spokesperson said.
CEO John Cryan is cutting 9,000 jobs across the company in attempts to raise profitability and capital levels eroded by misconduct costs. Deutsche Bank’s market share in fourth-quarter trading fell to the lowest since the financial crisis as Cryan cut assets and clients concerned about the company’s finances pulled back.
Zero Hedge reports that debt-trading revenue rose 11 percent to 1.38 billion euros ($1.48 billion), falling short of the 1.68 billion-euro average estimate of 10 analysts in a Bloomberg News survey. Equity trading revenue, which analysts had expected to be flat, fell 23 percent to 428 million euros.
The equities business is still “flattish to slightly down” in January compared with a year earlier, though the firm’s debt-trading business saw a 40 percent increase in the month, Deutsche Bank Chief Financial Officer Marcus Schenck said Thursday on a call with analysts.
According to the law firm of Levi & Korsinsky LLP, an employee advocacy firm, these mass layoffs may produce possible employment violations. For example, the WARN Act is a United States labor law which protects every employee by requiring most employers with 100 or more employees to provide 60 calendar-day advance notification of plant closings and mass layoffs. Employees are therefore entitled to full pay and benefits during such period prior to layoff and may also be entitled to various other protections under the law.
The advance notice is intended to give employees and their families transition time to adjust to the prospective loss of employment, to seek and to obtain other employment, and, if necessary, to enter skill training or retraining programs that will allow these workers to successfully compete in the job market. Oftentimes, employees fail to receive the benefits they are due, or are otherwise harmed during the layoff process and may have recourse under the law.
For more information about the WARN Act and other employee rights, contact:
Levi & Korsinsky LLP
www.WARNact.com
877-363-5972
