DEUTSCHE Bank is set to cut jobs in its investment banking arm, it emerged yesterday, thanks to tougher conditions in capital markets.
In April the bank announced there would be no job losses in the lucrative business.
But since then conditions in the Eurozone have worsened dramatically, reducing client activity and driving banks across the world to cut back on expenses, including staff, to shore up profits.
A slowdown in trading activity in the three months to June has forced investment banks including Credit Suisse, Goldman Sachs and UBS to slash staff.
The 1,000 losses come on top of the 500 announced last October in the corporate banking and securities areas, when the institution complained of a “significant and unabated slowdown in client activity.”
The bank would not confirm when or where the job losses will fall, although more information is expected to be forthcoming when it reveals its second quarter earnings at the end of the month.
But the gloomy outlook for staff did not weigh on markets – Deutsche Bank’s shares rose 0.55 per cent yesterday to hit €25.75 (£20.12), although it has suffered through the second quarter, falling from a high of €39.50 in March.