Another Major Firm Said To Be Cutting Staff

The UK media is reporting that Deutsche Bank is set to announce that it is cutting 900 staff from its global markets division as it, too, responses to the economic crisis by getting its costs down.

Staff in London and New York are said likely to take the brunt of cuts, which will come in CDOs, credit origination and prop trading and support. Although the investment bank has now posted three straight quarterly losses, Deutsche has navigated its way through the financial crisis relatively better than most rivals, so the job cuts there are not as extreme as those seen at places like Citi, Merrill Lynch and UBS. The bank has so far refused to accept money from the German government's bank bailout plan.

The Wall Street Journal reports that Citi will be cutting a 'small' number of its 2,500 staff in Australia as part of its recently-announced additional 53,000 cull. The cuts will come across investment and retail banking and in asset management. The newspaper also reports that Credit Suisse is likely to cut up to 5 traders in its 10-person carbon-trading operation as a part of its latest restructure. And Nomura is now said to be axing 'dozens' of former Lehman staff in Tokyo, at the same time as it has just hired 20 former Lehman staff into equities in New York.

The Daily Telegraph reports that Fidelity International is looking to shed around 300 of its 2,100 UK staff as part of a global restructuring. And asset management firm New Star is said to be cutting 60 positions from its 380 headcount in a bid to rein in costs.

The grim reality is beginning to set in at Merrill Lynch, as staff start to realise the depth of the job cuts likely as a result of the impending Bank of America merger. Thousands of positions will go around the world. The merger-related cuts are likely to start early in the New Year, and should be mostly completed in the first-quarter.

Finally, Collins Stewart is said to be restructuring its capital markets business, and is expected to make a number of lay-offs in corporate broking and sales.

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