- Deutsche Bank has reportedly stopped buying fresh fruit for staff as part of a drive to cut costs.
- A memo reported by the Financial Times says a decision was made by Deutsche’s “cost catalyst steering committee” to remove the perceived unnecessary cost.
- The bank, which appointed a new CEO in April, is cutting back aggressively in numerous areas of its business after several hard years.
Deutsche Bank’s latest cost-cutting measure is to reportedly stop buying fresh fruit for staff.
According to the Financial Times’ City Insider gossip column, the bank circulated a memo on May 3 telling staff that free fruit will no longer be provided after a decision was made by Deutsche’s “cost catalyst steering committee” to remove the perceived unnecessary cost.
Joerg Salzer, Deutsche’s head of corporate services, authored the memo and described the change as “small” but said that it would “send a signal” about the bank’s efforts to cut costs, according to the FT.
Salzer added that any employees who “have ordered or received fresh fruit in the last couple of months,” would be receiving an individual email from him in coming weeks.
Deutsche Bank declined to comment when contacted by Business Insider
Deutsche Bank’s aggressive cost-cutting programme comes as the bank adjusts to life under new CEO Christian Sewing, who replaced Brit John Cryan in April. Soon after his appointment, Sewing announced plans to scale back US operations and cut jobs.
Plans involve scaling back the bank’s US operations in both rates sales and trading, while corporate finance operations in both the US and Asia will shrink.
“Even a quick look at the figures makes one thing clear: we have to take action – fast,” Sewing said in a letter sent to staff published by the bank.
Deutsche Bank in February reported a full-year loss of €497 million ($US586 million) for 2017, its third straight year of losses.
Earlier this week Steve Eisman, the money manager famous for being the main character in “The Big Short”, called Deutsche Bank a “problem bank” that has “real profitability issues.”
Separately, analysts at Barclays warned that Deutsche’s cost-cutting efforts may be in vain, writing in a note that it expects the German bank “to struggle to achieve its cost-cutting targets.”
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