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.
Writing 26 books and a memoir in his lifetime, John le Carré is widely considered to be one of the best spy novelists of all time.
His son, Simon Cornwell, told Sky News: “I think there was only one thing that was more important to him than his family and that was his writing.”
Image: Rory Keenand and Mat Betteridge in The Spy Who Came In From The Cold. Pic: Johan Persson
Image: Tom Hiddleston returns in season two of The Night Manager. Pic: BBC/Ink Factory/Des Willie
First gaining attention in 1963 with his breakout novel, The Spy Who Came In From The Cold, cementing his reputation 10 years later with Tinker Tailor Soldier Spy, his work is now enjoying a resurgence.
The Spy Who Came In From The Cold has been adapted for the stage for the first time, with confirmation of a TV series to follow, while another of his works, The Night Manager, premieres its second season starring Tom Hiddleston in the new year.
There are further productions waiting in the wings, plus an unfinished le Carré play with the potential to be developed.
And archives of le Carré’s work – containing over 1,200 boxes of material – have gone on display at the Bodleian Libraries at the University of Oxford.
Writing under a pen name, le Carré, who was born David Cornwell, died in December 2020.
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His elder sons, Simon and Stephen, now manage the film, TV and stage rights of his work through their studio The Ink Factory, while his youngest son, Nick, expands the George Smiley universe.
Image: (R-L) Nick Harkaway, John Le Carré, and Simon, Stephen and Tim Cornwell. Pic: Clare Cornwell
Smiley’s continuation ‘could have gone horribly wrong’
One of le Carré’s most well-known creations, Smiley was the antidote to James Bond – bespectacled, balding and a little out of shape – and a recurring character in le Carré’s books.
Simon says Nick, who has two more Smiley books in the pipeline, was “taking on a big risk” developing the character, but insists, “he is the only person who could have done it and done it that well”.
He goes on: “He could find my father’s voice… he grew up talking every day to my dad, as we did, and he just knows at an instinctive level what’s important…
“There are so many ways in which it could have gone horribly wrong, and it went brilliantly right.”
Image: Nick Harkaway with his first Smiley continuation novel, Karla’s Choice. Pic: AP
‘A family enterprise’
Explaining how they all work together – calling it a “family enterprise in the best of ways” – Simon explains: “A lot of authors, when they die, they leave very strict instructions to their children, their estate as to how things should be managed and lots of rules and restrictions and everything else. My dad didn’t do that.”
Le Carré’s fourth son, Tim, sadly died aged 59 in 2022, shortly after editing a collection of his father’s letters, titled A Private Spy.
Le Carré is by no means the only author whose legacy lives on via others.
Announcing a staggered retirement, Lee Child passed his hit creation Jack Reacher on to his younger brother Andrew in 2020.
PG Wodehouse’s much-loved Jeeves and Wooster stories have been rewritten this Christmas by celebrity fans including Frank Skinner and Alan Titchmarsh, half a century after his death.
Image: Daniel Craig at the No Time To Die world premiere in 2021. Pic: Reuters
Staying part of the conversation is key
While Ian Fleming’s James Bond has been continued by 15 authors so far, and spilling into the young adult genre, capturing a whole new generation of readers.
Mark Edlitz, intellectual expert and author of The Many Lives Of James Bond, told Sky News such continuations are essential to the survival of the work.
Image: Author Mark Edlitz has written about the Bond continuation novels
“We have seen all these detectives and spies who don’t have a movie series or a TV series to bolster their eyeballs, and then they fade from public view.
“These books and movies help keep the author’s work present and viable and part of the public conversation.”
Sarah Baxter, senior contracts advisor for The Society of Authors, says remaining relevant and visible has another big benefit too.
“That kind of partnership can go on to give a whole new lease of life to works that may have been written many, many years ago, and it can go on to generate a lot of income for a literary estate.”
Image: Le Carré – an enigma, even to his family, to the end. Pic: AP
‘An enigma’
More than 60 million copies of Le Carré’s books have been sold worldwide, with new adaptations likely to boost those sales further.
But Simon Cornwell says the investment in his father’s work is about more than just profits.
“We became very, very close as a family because he was very keen to be a proper dad and we were working with him and his material as well, so it was particularly towards the end of his life. It was a beautiful, thrilling thing.”
A master storyteller, the moral ambiguity of the fictional world he constructed reflected back on to its creator.
Simon says: “He remained an enigma. I think in some ways he was probably an enigma to himself…
“He was an extraordinary man to be close with, but do you ever understand somebody like that? Probably not.”
His work more widespread than ever, but the man himself – still a mystery.
The Spy Who Came In From The Cold is at @sohoplace in London’s West End to 21 February before embarking on a UK Tour.
John le Carré: Tradecraft is at the Bodleian Libraries at the University of Oxford until 6 April.
Astronomers have detected a remarkable wobble in the orbit of a star being torn apart by a black hole, offering one of the clearest confirmations yet of Einstein’s frame-dragging effect. By tracking repeating X-ray and radio signals every 20 days, researchers captured spacetime twisting around a rapidly spinning black hole—revealing powerful insights into extreme …
Astronomers using ESA’s Euclid telescope and AI analysis have found that merging galaxies are significantly more likely to host active supermassive black holes. The gravitational chaos of a collision drives gas toward the galactic core, igniting AGN activity. This discovery strengthens the link between galaxy interactions and the energetic processes that shape galac…