Deutsche Bank Fixed Income Traders Are Safe; But Only for Now

(Bloomberg) -- Deutsche Bank AG’s fixed-income traders have so far been spared from the lender’s radical job reductions program. At some point, though, that will change.

Chief Executive Officer Christian Sewing’s latest plan will ultimately result in cuts to both front office and back office staff associated with the buying and selling of interest-rate related securities, according to a person familiar with the matter. Timing and precise numbers haven’t yet been decided, the person added, asking not to be identified discussing the private deliberations.

The troubled lender unveiled a drastic overhaul centered around a pullback from equities trading and more limited cuts to rates trading earlier this month. The bank plans to eliminate 18,000 jobs by the end of 2022, effectively kicking off the largest redundancy effort in its recent history. Shortly after the announcement, fixed-income trading head Ram Nayak told staff that the plan to shrink the rates platform wouldn’t lead to dismissals in his part of the business, people familiar with the matter said at the time.

Deutsche Bank hasn’t broken down the geographical and divisional spread of the targeted cuts except saying it will affect all regions. The lender said that it has informed more than 900 staff -- mostly in equities trading -- that their employment will end since the restructuring announcement .

To contact the reporter on this story: Steven Arons in Frankfurt at sarons@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Ross Larsen

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