Deutsche Bank is reportedly looking to move half of its 4,600 Manhattan employees to smaller hubs across the US.
The head of Deutsche bank Americas business Christiana Riley told the Financial Times that the bank may relocate its Manhattan employees to the US within the next five years.
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According to Riley, the German banking group could ‘conceivably’ reduce its employee strength in New York by half over the next five years, depending on the evolution of ‘smaller hubs and pockets’.
She believes that the bank should concentrate its staff in low-cost areas across the US, instead of following technology companies that allow their employees to work from anywhere they prefer.
Riley told the publication: “I’m optimistic that New York remains, to a degree, a hub. You will continue to have significant amounts of institutional capital sitting in and around New York … But that isn’t maybe going to be relevant for all of those people.”
Recently, the bank said that it expects to reduce its 2022 adjusted costs by €300m ($363m) more than earlier announced. The decision was attributed to the change in work habits in the wake of the Covid-19 pandemic.
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By GlobalDataIt was reported earlier that Deutsche Bank is looking to make its Covid-19-induced flexible working arrangement permanent as reducing office space emerged as a feasible way to cut costs.
In September, Deutsche Bank asked its New York City staff to continue working from home until July 2021.
Notably, last week, the German lender reportedly obtained a fund custody licence in China, in the latest sign of China’s financial services sector liberalisation.
