Layoff Rumors Swirl Around Deutsche Bank

By Eleazar David Meléndez | September 21 2012 10:29 AM

Rumors swirled that giant German financier Deutsche Bank (NYSE:DB) (XETRA:DBK) was preparing to lay off more than 500 employees, according to several financial media outlets Friday, a day after a leaked report suggested U.S.-based Bank of America was accelerating its own round of firings.

Reuters

Deutsche Bank is reportedly set to fire more than 500 employees in Germany, various financial media outlets reported Friday, but the Frankfurt-based bank is denying the reports.

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The Frankfurt-based bank dismissed the rumors by noting that, while it was indeed looking to axe hundreds from its support staff, the report was "nothing new" but part of its strategy to "integrate" acquired Postbank into its fold.

"Further job cuts beyond what's already been agreed with labor unions are currently not planned," the bank said in a statement Friday.

However, that was not what reporters were hearing from labor union sources, with Reuters reporting "financial sources" had confirmed Deutsche Bank was seeking more layoffs. The situation was politically fraught by the fact it is rumored the new job cuts will occur mostly in Frankfurt and Bonn.

A restructuring plan unveiled earlier this year established that Deutsche Bank would seek to cut some 3,500 jobs, but the vast majority of those firings were supposed to take place outside of Germany.

New York-listed shares of Deutsche Bank AG recently traded at $43.04, up 82 cents, or 1.94 percent, from the previous day's close.