Deutsche Bank has taken further steps this week to help restore its profitability and confidence for shadeholders, this time targeting bonuses in a bid to help alleviate its current struggles – the latest cuts to its bonus pool are estimated to be almost 80 percent.
The past few years have been characterized largely by tapered rounds of job cuts, which started in late 2015 after the group initially announced that it would jettison upwards of 35,000 jobs over the next few years. These cuts were relegated to the back-office and IT space, though trading desks have also felt the crunch.
Earlier this month, Deutsche Bank announced plans to cut nearly 17 percent of its equities staff and 6 percent of its fixed-income staff globally – its fixed-income and foreign Exchange (FX Desks have been particularly hit in recent years.
In its latest announcement though, Deutsche Bank’s employees will be taking further hits, even if that involves them retaining their jobs. Its latest cost-cutting measures will affect roughly 100,000 staff globally, according to a Bloomberg report. Still, others will instead receive a special long-term incentive that is dictated by the bank’s performance – this option is available on a more limited basis to around 5,000 staff members.
The gutting of bonuses is the latest effort by Deutsche Bank’s CEO John Cryan to help right the ship, though shareholder patience is waning, as illustrated by the latest declines in its prices.
