NEW YORK: Deutsche Bank is planning cuts at its US equities business, including prime brokerage and equity derivatives, to win over shareholders unhappy about its performance, four sources familiar with the matter told Reuters.
Chief executive officer Christian Sewing told shareholders at the bank's annual meeting on Thursday it was prepared to make "tough cutbacks" at its investment bank. Mr Sewing is battling to convince them he can turn around Germany's biggest lender, whose shares have reached a record low, report agencies.The bulk of the anticipated US cuts will come from its money-losing equities business, which includes cash equities trading. Other areas of the business, including US rates trading, have been earmarked for further reductions, they said.
It is unclear how many of the bank's 9,275 US employees will be affected and no final decisions have been made, the sources said.
Deutsche Bank declined to comment.
Mr Sewing did not name which parts of the business will be cut or when the changes will happen when addressing shareholders on Thursday. However, two people with knowledge of the matter told Reuters that job cut announcements are not imminent.