Deutsche Bank to cut an additional 35 New York jobs via ‘near-shoring’

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Deutsche Bank to cut an additional 35 New York jobs via ‘near-shoring’

All things considered, it’s nothing more than a drop in the bucket, though one that will affect a few dozen people. Less than a month after announcing plans to cut 18,000 jobs globally, Deutsche Bank has said it will transfer 35 operations jobs from New York to its Jacksonville, Florida office in a move the firm has classified as a layoff.

The struggling German lender filed a Worker Adjustment and Retraining Notification (WARN) with the New York State Department of Labor that was made public late on Tuesday. Companies with a large footprint in New York are obliged to notify the state at least 90 days before reducing local workforces by a significant number. The notice implies that the 35-person operations team that supports the firm’s transaction bank likely won’t be headed to Florida.

Banks will often ‘near-shore’ jobs to cheaper locations like Jacksonville and offer to relocate some employees, though that’s a somewhat unusual step for lower-paid operations roles. Deutsche Bank said only that “the work” of one of its operations units will be transferred. The firm declined to comment on the latest round of layoffs, which are scheduled to take place on Sept. 30 and Oct. 17.

The move comes less than two weeks after the bank filed a similar notice indicating it will cut 126 New York-based jobs on or around Aug. 7. These positions, spread across Deutsche Bank Securities and other business units, will not be transferred. The bank said the reason for dislocation was “economic.”

Deutsche Bank plans to cut as much as 20% of its workforce as profits have dwindled alongside its share price. Near-shoring jobs to lower-cost locations like Jacksonville may be another tool Deutsche Bank uses as it begins another round of restructuring.

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