Bloomberg News

Deutsche Bank Said to Cut 30 Jobs at Japan Global Markets

January 26, 2012

(Updates with Japan earnings in the fifth paragraph.)

Jan. 19 (Bloomberg) -- Deutsche Bank AG is eliminating about 30 jobs from its global markets division in Tokyo, the second round of redundancies in less than two months, two people with knowledge of the matter said.

Germany’s biggest lender told some sales and research staff in equity and fixed-income businesses on Jan. 17 that their positions were being cut, said the people, who declined to be identified as the matter is confidential.

The Frankfurt-based lender is reducing costs globally as earnings prospects worsen amid Europe’s sovereign debt crisis and stricter global banking regulations. The firm said on Oct. 4 that it will cut about 500 positions at its corporate banking and securities unit, primarily outside Germany, by March 31.

Aston Bridgman, a Tokyo-based spokesman for the firm’s brokerage unit in Japan, declined to comment on the latest reductions. Deutsche Bank fired about 20 investment banking staff in Tokyo early last month, two people with knowledge of the matter said at the time.

The Japanese brokerage unit swung to a loss of 50.3 billion yen ($656 million) for the year ended March 2011 from a profit of 2.3 billion yen a year earlier, according to its financial statement. It employed 906 people at the end of last fiscal year.

Peers Also Cutting

Japanese and foreign firms are also reducing payrolls in the country. Mitsubishi UFJ Morgan Stanley Securities Co. plans to quadruple domestic job cuts to about 1,300. Mizuho Securities Co. will eliminate about 700 jobs, or 10 percent of its workforce, the brokerage said in October.

Nomura Holdings Inc., Japan’s largest brokerage, told about 15 equity employees from the global markets division in November that their jobs will go as part of a $1.2 billion cost-cutting drive. Zurich-based UBS AG and Credit Suisse Group AG are also trimming headcount in Tokyo.

Deutsche Bank was Japan’s No. 4 financial adviser for mergers and acquisitions in 2011 from ninth a year earlier, helped by advising Takeda Pharmaceutical Co.’s acquisition of Nycomed, data compiled by Bloomberg show. The bank was ranked ninth in managing share sales in Japan last year, up from 11th in 2010.

The German lender is scaling back its equity business in Austria, concentrating European operations in Frankfurt and London, it said on Jan. 13. It’s also paring brokerage operations in Italy, three people with knowledge of the matter said earlier this month.

--With assistance from Kanoko Matsuyama in Tokyo. Editors: Russell Ward, Jarrett Banks

To contact the reporter on this story: Takahiko Hyuga in Tokyo at thyuga@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net


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