Staff Cuts - Up to 6% in Fixed Income, 17% in Equities.

Deutsche Bank is about to eliminate staff in its global trading business - up to 17 % in equities and up to 6% in fixed income. CEO John Cryan is eliminating 9,000 jobs across the company to raise profitability and capital levels eroded by misconduct costs.

Deutsche Bank hasn’t said how the 9,000 jobs cuts, first announced in 2015, would be split across each of its businesses. On Thursday, management board member Christian Sewing reiterated that 4,000 of the cuts would be in Germany, most of them at the private, wealth and commercial clients unit, which he oversees. 

The cuts in equities mark a contrast with the bank’s goals of growing in that business. Last April, CFO Marcus Schenck said, “we’re very committed to equities as part of our strategy, and we are reinvesting here in our confidence that we will regain market share.”

However, equity trading - which was expected to be flat - fell 23% in the 4th quarter. Debt-trading revenue rose 11%, though short of expectations. Troubles at many of DB's hedge fund clients was blamed for the weak showing in equities.