Deutsche Bank to cut over 7,000 jobs

German financial giant Deutsche Bank that the ‘associated personnel reductions are underway.’ (AFP)
Updated 24 May 2018

Deutsche Bank to cut over 7,000 jobs

FRANKFURT: Deutsche Bank said on Thursday it will reduce global staff levels to well below 90,000 from the current 97,000, as part of a broad restructuring to reduce costs and restore profitability.

The bank said it would cut headcount by 25 percent in its equities sales and trading business following a review of the business.

The reductions will decrease the investment bank’s leverage exposure by €100 billion ($117 billion), or 10 percent, with most of the cuts to take place this year, Deutsche said.

“We remain committed to our Corporate & Investment Bank and our international presence – we are unwavering in that,” Chief Executive Officer Christian Sewing said in a statement.

“We are Europe’s alternative in the international financing and capital markets business. However, we must concentrate on what we truly do well.”

The details on the bank’s strategy come ahead of the bank’s annual general meeting on Thursday.

Shareholders, fed up with a languishing share price and dwindling revenues, said they would call on the bank’s management to speed up the recovery process at the AGM.

The loss-making bank said after an abrupt management reshuffle last month that it aimed to scale back its global investment bank and refocus on Europe and its home market after three consecutive years of losses. It had flagged cuts to US bond trading, equities, and the business that serves hedge funds.

Thursday’s shareholder meeting comes after months of turmoil for the lender, Germany’s largest.

Deutsche Bank Chairman Paul Achleitner last month abruptly replaced CEO John Cryan with Sewing amid investor complaints that the bank was falling behind in executing a turnaround plan.

Deutsche’s shares are down more than 31 percent so far this year.

The bank is also under pressure from credit ratings agencies. Standard & Poor’s is expected to say by the end of the month whether it will cut Deutsche Bank’s rating after putting it on “credit watch” in April.

GITEX Tech showcases Saudi Arabia’s regional innovation drive

Updated 15 October 2018

GITEX Tech showcases Saudi Arabia’s regional innovation drive

DUBAI: Dubai’s GITEX Technology week showcased the region’s ability to take the lead in innovation technology, with Saudi Arabia on its way to take the driver’s seat, according to consulting firm Accenture’s country managing director in Saudi Arabia.
“Saudi Arabia will be a leader in supporting innovation and the development of new technology in the region,” Khaled Al-Dhaher told Arab News.
“I think we (Arab countries) can always complement each other in the region to make sure we have the best innovation that is relevant for us and focused on the needs of our markets,” he added.
Among the main drivers behind the Kingdom’s surge into innovation and incubation is the Center of Initiatives at Prince Mohammed bin Salman bin Abdul Aziz Foundation (Misk), which is an exclusive partner at GITEX Future Stars 2018.
Misk Innovation showcased 20 Saudi-based start-ups and incubators, ranging from 3D printing technology (SHAKL) to e-commerce (Zid) to online grocery shopping (ZADFresh).
Another prominent player from the Kingdom was the Badir Program, which helps to sustain and develop pioneering environments within the Kingdom and stays in line with following the crown prince’s Vision 2030 plan.
The plan, unveiled in 2016, is a comprehensive blueprint for the future, laying out a strategy and clear targets to diversify Saudi Arabia’s economy, and develop public service sectors such as health, education, infrastructure, recreation and tourism.
“We see a big support toward start-ups in terms of seed funding, arranging funding rounds, investment funding rounds, which actually is very important to accelerate the growth of these start-ups,” Badir Program’s CEO Nawaf Al-Sahhaf told Arab News, adding: “They (start-ups) created more than 2,000 jobs in the last two years.”
The 38th annual exhibition, which kicked off on Sunday, centered around the rise of smart cities. Dubai’s government featured high-tech stands promoting the emirate’s ruler Sheikh Mohammed bin Rashid’s vision of a totally smart Dubai.
While Dubai is ahead of Saudi Arabia in this respect, the latter is not far behind.
“Saudi Arabia is building new cities now, and one of them is NEOM. Smart cities needs smart solutions and smart products, so Saudi Arabia is a big supporter of entrepreneurs and the private sector in order to come up with these smart solutions,” Al-Sahhaf said.
“Saudi Arabia is moving in this [Smart] direction and we are in good hands,” he added.
The Saudi Technology Development and Investment Company, Taqania, was also featured at the exhibition. Owned by the Kingdom’s Public Investment Fund, Taqania is one of Saudi Arabia’s main proponents in a non-oil dependent Kingdom aligned with Vision 2030, and invests in technology that contributes to the country’s economic diversification.
The exhibition is split among several categories including Gulf Comms & Mobility, Global Solution Providers, Smart Workplace & Smart Homes, Value-Added Distributors, Printing & Automation, Consumer Tech, Enterprise Software, Network & Security, Future Tech and IOT Big Cloud Data.
GITEX Technology week runs from Oct. 14 to 18, with GITEX Future Stars taking place from Oct. 14 to 17.