Deutsche Bank: Statement in response to reports on job cuts in Germany
Deutsche Bank is not planning additional job cuts beyond those announced by the Management Board on July 7. At that time, Deutsche Bank announced a new strategy which included a planned workforce reduction of 18,000 to 74,000 employees by 2022 globally. The objective of the job cuts is to reduce Deutsche Bank Group’s adjusted costs by more than 25 percent to 17 billion euros.
We did not communicate any regional or divisional breakdown for these measures, and we will maintain this policy. As soon as decisions have been made regarding the exact number of jobs to be cut, they will first be discussed with those directly affected.
The Management Board has reiterated that all areas of Deutsche Bank must make their contribution. There will be a substantial number of job cuts in Germany, as it is where by far the largest share of Deutsche Bank’s workforce is based. The total reduction of the workforce by 18,000 includes the job cuts already planned in connection with the Postbank integration.
Credit Suisse: Board of Directors statement on the findings of the investigation into the observation of Iqbal Khan
The Board of Directors of Credit Suisse Group AG took note of the results of the investigation, which Homburger, attorneys-at-law, conducted on behalf of the Board of Directors.
The key findings of this investigation are the following:
– On August 29, 2019, when UBS announced the employment of Iqbal Khan, Credit Suisse’s Chief Operating Officer (COO) ordered the Credit Suisse Head of Global Security Services to initiate the observation of Iqbal Khan.
– During the Homburger investigation, the COO said that he alone, in order to protect the interests of the bank, decided to initiate the observation of Iqbal Khan, and that he did not discuss it with Credit Suisse’s Chief Executive Officer (CEO), any other member of Credit Suisse’s Executive Board, the Chairman of the Board of Directors of Credit Suisse or the Chairman of its Audit Committee.
– The Homburger investigation did not identify any indication that the CEO had approved the observation of Iqbal Khan nor that he was aware of it prior to September 18, 2019, after the observation had been aborted.
– Neither the Homburger investigation nor the observation of Iqbal Khan identified any evidence that Iqbal Khan had attempted to poach employees or clients away from Credit Suisse, contrary to his contractual obligations.
The Board of Directors appreciates taking appropriate measures to protect the company’s interests, including when senior employees leave the company. However, the Board of Directors considers that the mandate for the observation of Iqbal Khan was wrong and disproportionate and has resulted in severe reputational damage to the bank.
The COO assumed responsibility for this matter and submitted his resignation to the Board of Directors, which has been accepted with immediate effect. The bank has also accepted the resignation with immediate effect of the Head of Global Security Services.
James B. Walker appointed as Chief Operating Officer of Credit Suisse
Following the resignation of the COO, Pierre-Olivier Bouée, and his consequential stepping down from the Executive Board, the Board of Directors of Credit Suisse has decided to appoint James B. Walker as Chief Operating Officer and member of the Executive Board of Credit Suisse with immediate effect. James B. Walker currently holds several senior roles in the bank’s finance organization, including Chief Financial Officer of our key US subsidiaries and Head of Product Control. James has a long and excellent track record at Credit Suisse and the Board of Directors looks forward to working with him in his new role.
The Chairman of the Board of Directors, Urs Rohner, and the Chairman of the Audit Committee, John Tiner, will provide further explanation on these decisions at the media conference.