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Deutsche Bank plans to cut 440 jobs in Dublin, equivalent to nearly three-quarters of its employees and contractors in Ireland, as the unit is belatedly caught in a massive global job cut announced by the German group in 2019, according to sources.
The group, headquartered in Frankfurt, said in a statement Tuesday that it plans to “relocate just under 250 positions from Dublin to other centers around the world” in order to streamline functions in fewer locations .
The bank said it would “significantly reduce its workforce of subcontractors in Ireland during the year following the natural completion of a number of projects”. It is understood that the subcontractors represent 200 of its approximately 600 Irish employees.
Sources said 160 of the current roles will continue to exist after the restructuring, suggesting that more than 90 percent of entrepreneur roles will disappear.
However, the bank said it plans to add 35 front office positions over the summer to its Irish corporate banking and data and innovation lab units, bringing the total number of employees. about 200 in Dublin.
Deutsche Bank, founded in 1870, has had a presence in Ireland since 1991, primarily in the area of ​​Global Banking Transactions (GTB), which covers cash management, trade finance, treasury, trust and securities services for clients. global customers. The number of employees in Dublin has doubled over the past decade with the expansion of its GTB and global technology and operations centers in Ireland.
“We understand that the proposed plan will cause uncertainty and concern among affected colleagues, and we are committed to supporting them throughout the consultation process,” said Mary Campbell, Country Director of Deutsche Bank Ireland. “Deutsche Bank Ireland said Dublin will continue to be an important center for the bank.”
Restructuring
Sources said in July 2019, as Deutsche Bank announced it was cutting 18,000 jobs – or 20% of its then global workforce – by 2022, that the cuts in Dublin would be minimal. The banking giant, led by chief executive Christian Sewing for three years, has gone through a series of restructuring programs over the past decade.
German banks led a wave of European lenders who established Irish wholesale banking subsidiaries during the 1990s as the International Financial Services Center (IFSC) took off.
However, over the past decade, most German banks, including DZ Bank, Helaba and Commerzbank, surrendered their Irish licenses to the Central Bank, as their parents sought to free up ‘trapped’ capital in various subsidiaries and streamline their own organizations.
Depfa Bank, the German-born lender that moved its headquarters to Dublin in 2002 before falling victim to the financial crisis, has been in liquidation since 2014.
In March, Irish bank EAA Covered Bond Bank, once part of German lender WestLB, which collapsed during the financial crisis, gave up its banking license after an unsuccessful attempt to sell the business one year ago.