It has begun. Deutsche Bank's 200 equities layoffs are being made and it's the German bank's directors and managing directors who are the targets.
Deutsche isn't commenting on the redundancies, but headhunters say a steady stream of senior staff are dribbling out of the bank and wondering what to do next.
Deutsche's Asian equity derivatives business has been particularly hard hit. At managing director (MD) level, the exits reportedly include Stephane Avis, Vishal Mirpuri and Martin Fothergill. Avis was Deutsche's head of equity flow and exotics derivatives trading for Asia-Pacific. Based in Hong Kong, he'd worked for Deutsche since 2005 after joining from IXIS CIB. Also based in Hong Kong, Mirpuri was Deutsche's head of global equity derivatives sales in APAC, and had worked for the bank since 2010 after joining from Citi. Fothergill was based in London and was global head of multi-asset products. He'd worked for Deutsche for time immemorial, having joined from Banker's Trust in 1998.
At director level, the exits are said to include Charles Beddow and David Johnson, both directors in equity sales trading, Peter Smart, head of U.S. equity sales into Europe, Keith Macksoud, a director in global prime finance sales, Ivona Milic in equity derivatives structuring, Vivek Bhutoria in Asia equity sales and Fred Chalencon, a director in fund derivatives and structuring. All are based in London.
Headhunters said early signs are that Deutsche's equities layoffs have been disproportionately skewed towards its directors as opposed to its MDs, and that overall the cuts haven't been as harsh as predicted. A handful of vice presidents and analysts and associates have disappeared too. Robbie Costello, a junior European equities sales trader is understood to have gone, for example. Deutsche's U.S. equities operations are also said to have been affected.
Deutsche is thought to be cutting around 100 people in fixed income sales and trading, but insiders said these layoffs are due to start later.
As we reported last week, most of Deutsche's businesses under-performed the market last year. The coming exit of Jeffrey Urwin as head of the corporate and investment bank suggests Deutsche may also reorganise in IBD.