Even after receiving a fresh dose of capital for business expansion, Deutsche Bank India is learnt to have started laying off employees following the general industry trend. Though Deutsche Bank remains mum about job cuts, a senior official close to the development indicated the bank had asked several officials to quit as a cost-cutting measure.
When contacted, Deutsche Bank India spokesman told ET the bank would not wish to comment. An e-mail sent last Friday (December 5) to the official seeking details of the job cuts and the reasons behind it did not elicit a response.
However, a senior bank official said on the condition of anonymity the decision to lay off some of its employees was in order to “make minor adjustments in its human resources front”. Incidentally, there have been talks of Deutsche Bank laying off staff at its Singapore operations too.
The German bank also remained silent on its current employee strength. As on March 2008, it had 3,500 employees for its 11 offices here. The tally significantly rose from 2,250 a year ago and 678 in March 2006, according to Reserve Bank of India’s latest fact sheet on banks. A banking industry executive claimed the number was growing this financial year too despite this retrenchment. Overall, the group has over 6,000 employees in India.
What has surprised banking circles is the fact that Deutsche started laying off employees even as it infused Rs 325 crore of fresh capital into its India operations. A significant chunk of the money is expected to be used for its corporate banking expansion.
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