Staff at Commerzbank Securities are said to be nervously awaiting an announcement as to their fate. And they should have a better idea of where they stand on the 9th November, when the bank is likely to release the results of its strategic review.
The Wall Street Journal quotes unnamed 'people familiar with the situation', who have claimed that there will be 'severe cuts' in London and that the workforce in both New York and Tokyo will be 'dramatically' reduced. The Financial Times Deutschland reported Monday that around a quarter of the firm's 1,250 global staff are likely to be axed and there is a report in German newspaper Handelsblatt that Commerzbank is planning to close altogether its securities unit's office's in New York and Tokyo.
The bank's third quarter results will also be released on Tuesday. The securities unit posted an operational loss of $59.8m in the second quarter.
Meanwhile the Times 'City Diary' has reported that the sackings have already started at money brokers Tullet and Prebon, now both owned by Collins Stewart. There are fears that up to 600 staff around the world could eventually be axed as the units get integrated. 150 staff are said to have already gone in London.