Deutsche Bank to cut 3,500 jobs as quarterly profit plunges 30% on hit to US real estate

Published

2 years ago

February 6, 2024

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Deutsche Bank on Thursday said it plans to slash 3,500 jobs after reporting a 30% drop in fourth-quarter profit that included heavy losses in its US real estate holdings.

The layoffs come after the German banking giant hired 300 front-office staffers in the three-month period ended Dec. 31, though the firm’s CEO Christian Sewing said the headcount reduction will primarily impact back-office roles, and are part of a larger turnaround effort, according to The Wall Street Journal.

Let me stress that cost discipline continues to be our top priority, Sewing told reporters, per The Journal, adding that the bank would take more cost-saving measures if need be.

The bank had already announced plans to cut jobs, but this was the first time it had put a number on the layoffs, equivalent to just under 4% of its global workforce of about 90,000. The jobs affected will be back office roles.

Sewing also announced a share buyback plan and to pay dividends will total $1.7 billion during the first half of the year.

Though its fourth-quarter net profits plunged 30% from the year-ago period, the $1.4 billion that was generated easily beat the $853.45 million analysts expected.

Deutsche said it took $133 million hit for its US-based portfolio, which includes its headquarters on Wall Street, as well as locations in California, Florida and Texas, according to a presentation to investors released alongside earnings obtained by Bloomberg,

The provisions mark a more than 350% increase from the roughly $28.2 million it allotted for losses regarding its portfolio in 2022’s fourth quarter, Bloomberg reported.

Deutsche’s US offices represent about 1.5% of its total lending book, according to the outlet.

The bank, based in Frankfurt, Germany, also said refinancing its real estate loans was the “main risk.”

There’s also the possibility that debts will come due on properties that have fallen in value, requiring borrowers to inject fresh equity to secure new loans, the bank said.

Representatives for Deutsche Bank did not immediately respond to The Post’s request for comment.

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Deutsche isn’t the only firm that faces debts on its real estate: Last month, Bloomberg revealed that asset manager Blackstone defaulted on its $308 million mortgage on a Manhattan office tower more than a year ago and the debt is now up for sale at a discount of more than 50%, citing people familiar with the matter.

Given the discounted loan, sources told the outlet that the building — located at 1740 Broadway — could be eligible for an office-to-residential conversion.

The skyscraper has been losing value since 2014, when the mortgage was originated and the 26-story Art Deco-style tower was appraised at $605 million, according to loan documents reviewed by Bloomberg.

The tower is just one of many empty office buildings scattered across New York City, which is in a so-called urban doom loop caused by an influx of working from home during the pandemic a trend that has stuck despite return-to-office mandates.

The doom loop concept is defined by empty office towers, which destroy quality of life and eventually drive residents out.

In the Big Apple, occupancy has only bounced back to 48.4% since the pandemic.

At the start of 2020, however, office occupancy was a strong 90% before it plummeted to 10% upon the outbreak of COVID-19.

Business

COVID schemes’ fraud and error cost taxpayers £11bn

Published

17 mins ago

December 9, 2025

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COVID schemes' fraud and error cost taxpayers £11bn

COVID-19 fraud and error cost the taxpayer nearly £11bn, a government watchdog has found.

Pandemic support programmes such as furlough, bounce-back loans, support grants and Eat Out to Help Out led to £10.9bn in fraud and error, COVID Counter-Fraud Commissioner Tom Hayhoe’s final report has concluded.

Lack of government data to target economic support made it “easy” for fraudsters to claim under more than one scheme and secure dual funding, the report said.

Weak accountability, bad quality data and poor contracting were identified as the primary causes of the loss.

The government has said the sum is enough to fund daily free school meals for the UK’s 2.7 million eligible children for eight years.

An earlier report from Mr Hayhoe for the Treasury in June found that failed personal protective equipment (PPE) contracts during the pandemic cost the British taxpayer £1.4 billion, with £762 million spent on unused protective equipment unlikely ever to be recovered.

Factors behind the lost money had included government over-ordering of PPE, and delays in checking it.

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Politics

COVID schemes’ fraud and error cost taxpayers £11bn

Published

17 mins ago

December 9, 2025

admin

COVID-19 fraud and error cost the taxpayer nearly £11bn, a government watchdog has found.

Lack of government data to target economic support made it “easy” for fraudsters to claim under more than one scheme and secure dual funding, the report said.

Weak accountability, bad quality data and poor contracting were identified as the primary causes of the loss.

The government has said the sum is enough to fund daily free school meals for the UK’s 2.7 million eligible children for eight years.

Factors behind the lost money had included government over-ordering of PPE, and delays in checking it.

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the latest version.

US

Luigi Mangione had handgun, silencer and ‘manifesto’ in backpack during arrest, police say

Published

17 mins ago

December 9, 2025

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Luigi Mangione had handgun, silencer and 'manifesto' in backpack during arrest, police say

Police officers found a handgun, a silencer and a red notebook described as a “manifesto” when they arrested Luigi Mangione.

The 27-year-old was arrested in December 2024 and charged with killing UnitedHealthcare chief executive Brian Thompson in New York City.

Mangione‘s lawyers want to block prosecutors from showing or telling jurors at his eventual trial in Manhattan about statements he allegedly made and items they said police seized from his backpack during his arrest at a McDonald’s in Pennsylvania.

The objects include a 9mm handgun prosecutors say matches the one used in the killing, a silencer, a magazine with bullets wrapped in underwear and a notebook in which they say Mangione described his intent to “wack” a healthcare executive.

The defence contends the items should be excluded because police did not get a warrant before searching Mangione’s backpack.

Prosecutors deny claims Mangione was illegally searched and questioned.

They also want to suppress some statements he made to police, such as allegedly giving a false name, because officers asked him questions before telling him he had a right to remain silent.

Last week, Mangione watched surveillance videos of the killing of Mr Thompson, 50, as he walked to a New York City hotel for his company’s annual investor conference.

Mangione has pleaded not guilty to state and federal murder charges.

The state charges carry the possibility of life in prison, while federal prosecutors are seeking the death penalty.

This week’s hearing concerns only the state case, but Mangione’s lawyers want to bar evidence from both cases.

In September, a judge dismissed two terrorism counts against Mangione, finding prosecutors had not presented enough evidence Mangione intended to intimidate health insurance workers or influence government policy.

Trial dates are yet to be set in either the state or federal cases.