This morning Deutsche Bank announced that it would lay off 1,900 people — 1,500 of whom would be in the investment banking sector (read the release here).
They put out a press release to explain these job cuts (they said government capital requirements were forcing them to search for cash), so we gave it a close read.
We found one paragraph that gives you a hint of what will happen if you do get to keep your job at Deutsche Bank.
Basically, you should expect some changes in your compensation.
Deutsche Bank is committed to being at the forefront of cultural change in the banking industry. As part of a range of measures to bring about a cultural change, the Bank is reviewing its compensation practices, in order to address both the absolute level of compensation and the relative balance between rewards for shareholders and those for employees. In addition, the Bank is reviewing its codes of personal conduct to ensure that they are in line with its long tradition of doing business to the highest standards.
That goes along with what Meredith Whitney said this morning on Bloomberg TV— Wall Street should expect more job cuts and lower compensation across the board. (Learn more about Whitney’s life and calls here).
After all, this isn’t just a Deutsche Bank problem. The capital requirements that are making cash so expensive for them are industry-wide (for big banks, at least). And other risk factors that make cash hard to find (like the sovereign debt crisis in Europe) are ongoing.
Bonus season is not going to be fun.
For more on what the layoffs mean, watch this video: