Business

Deutsche Bank cuts another 1,000 jobs

Deutsche Bank HQ Image copyright Reuters

Deutsche Bank has announced that 1,000 jobs will be cut in Germany.

The move adds to the 3,000 job losses announced in June.

Almost half of the latest job cuts will hit the company's chief operating office, with the rest spread over several departments.

Deutsche Bank has been under intense pressure since mid-September, when US authorities said they wanted the firm to pay $14bn to settle an investigation into mortgage-backed securities.

Since then, the company has been trying to reassure investors and staff that its finances are strong enough to handle such a large fine.

To boost its finances, it has been selling assets and has promised cost cuts.

In a statement announcing the latest round of job cuts, Karl von Rohr, a member of Deutsche Bank's management board, said: "We consistently implement our strategy to make the bank more efficient.

"We will ensure that any staff reductions are carried out in a socially responsible manner."

Crisis hangover

The Germany government has denied that it is planning a rescue for the nation's biggest bank.

But according to Reuters news agency, the German government is holding talks with US authorities to help Deutsche Bank reach a settlement.

Many banks have been fined over their activities in the US mortgage market in the run-up to the financial crisis of 2007.

During that time, banks were bundling up mortgages and selling them on as products known as collateralised debt obligations.

But when the financial crisis began, it was found that many of those products were worthless.

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