Deutsche Bank AG (DB)

[mdimport]

Deutsche Bank Said to Implement Hiring Freeze as CEO Cuts Costs

October 13, 2016

Bloomberg

Deutsche Bank AG is implementing a companywide hiring freeze as Chief Executive Officer John Cryan seeks to lower costs and shore up investor confidence, according to people with knowledge with of the matter.

Cryan, 55, is struggling to reverse a slide in shares that eroded almost half of the company’s market value this year, amid concerns about mounting legal costs after the U.S. Department of Justice requested $14 billion to settle a probe into faulty securities. Since taking over in 2015, Cryan has suspended dividends, scrapped bonus awards for top management and cut risky assets while eliminating some 9,000 jobs.

Deutsche Bank, which houses Europe’s largest investment bank, is holding informal talks with securities firms to explore options including raising capital should mounting legal bills require it, people with knowledge of the discussions said last week. The lender could also revisit selling its Deutsche Postbank unit or parts or all of its asset-management division, they said.

The CEO has already said Deutsche Bank may fail to be profitable this year after posting the first annual loss since 2008 last year. He also signaled that the lender may have to deepen cost cuts.

Deutsche Bank is scheduled to release third-quarter earnings on Oct. 27.

http://www.bloomberg.com/news/articles/2016-10-13/deutsche-bank-said-to-implement-hiring-freeze-as-ceo-cuts-costs