October 13, 2016 / 10:47 AM / a year ago

Deutsche Bank imposes hiring freeze to cut costs -source

LONDON, Oct 13 (IFR) - Deutsche Bank has imposed a hiring freeze across the bank as chief executive John Cryan steps up his plan to reduce headcount to slash costs, according to person familiar with the matter.

Cryan sent the bank’s divisional chief operating officers a message on Thursday saying hiring had been put on hold with immediate effect. He did not say how long it would last or how much it would save, the person said.

The hiring freeze affects all divisions, excluding compliance and some control functions, the person said.

Cryan is trying to revive the fortunes of Germany’s flagship lender but faces a number of challenges. The US Department of Justice said it wants to fine the bank US$14bn for mis-selling mortgage-backed securities. The bank is negotiating a settlement, but fears of a multi-billion dollar fine have raised concerns it will need to raise capital, sending its shares skidding.

Cryan has said he plans to cut 9,000 jobs as part of his turnaround plan, dubbed Strategy 2020.

The bank said last week it had reached an agreement with labour representatives to cut 1,000 positions in Germany, adding to 3,000 job cuts agreed with unions in June.

Other banks aiming to cut jobs have also imposed hiring freezes.

Barclays imposed a freeze last November, and chief executive Jes Staley said last month the bank had axed 13,600 net jobs since then, or 10% of its staff, mainly due to not filling positions. (Reporting by Steve Slater)

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