Deutsche Bank is ramping up its restructuring plans post-Brexit and is relocating 100 London employees to branches in Dublin, Berlin, Frankfurt, and across Asia, the Financial Times reported on Tuesday (May 25), citing sources.
The new strategy makes 25 percent of the corporate division’s 400 U.K. banking positions redundant. Some of the London employees can reapply for their jobs in new locations, but would have to accept a 25 percent pay cut, the sources told FT.
Germany’s biggest lender employs roughly 7,500 people, mostly in London, but also has a growing support staff in Birmingham, with about 1,000 positions across the areas of compliance, technology and human resources.
“We remain strongly committed to the U.K., which will continue to be an important center for our corporate bank as well as our other divisions,” Deutsche said in a statement. “It will continue to serve our many U.K. corporate bank customers and to provide services to our clients globally.”
Some of the changes in the corporate bank are not necessarily a result of Brexit, but Deutsche is using the time to streamline expenses and move some staff from London to less expensive locales. There is also a push to hire local talent and to relocate bank branches in closer proximity to regional clients, FT reported.
Deutsche also is looking to beef up its workforce in Frankfurt and Berlin as a way to mend its reputation with political officials in Germany after facing years of scandals and losing billions, sources said. The bank is considered to have vastly improved over the last 18 months under the direction of CEO Christian Sewing.
Since Brexit was announced, London has lost some 7,600 jobs and €1.5 trillion in assets, according to the consultancy EY. Aside from Deutsche’s restructuring, HSBC relocated about 1,000 London employees, and Citigroup moved 250 workers.
Vikram Dewan, chief information officer of Deutsche Bank’s corporate banking division, said in an August PYMNTS interview that corporate customers and individuals want the same thing: fast, seamless payments. FinTechs are accomplishing this, and traditional banks must also do so if they want to compete, Dewan said.
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