Deutsche Bank’s wealth manager Sal. Oppenheim will lay off over a third of its workforce as it deals with super-rich clients having developed a "new conservatism", which has led them to invest less.
Deutsche Bank’s Swiss private banking subsidiary Sal. Oppenheim plans to cut up to 330 jobs out of a total of 870 by the end of 2014.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Tough times and tough measures
The wealth management industry as a whole has suffered from clients holding back on making investments, eroding commission and fee income.
"We are aware that implementing the job cuts that have now been agreed will be a painful process for all involved," said Dr Wolfgang Leoni, Sal. Oppenheim’s chief executive officer. "However, the measures are necessary as they are the only way to ensure sustained profitability of our bank in wealth management.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"In future we will focus on our bank’s traditional strengths in client advisory service and investment management. Our clients especially value the close and trustful relationship to their advisors and independent investment expertise in portfolio management," added Leoni.
A statement released by Sal. Oppenheim’s said the focus on wealth management for private clients and select institutional clients "who value the personal advisory service from a private bank goes hand in hand with implementing a future-oriented organisational structure".
Roadmap so far
In September 2012, Deutsche Bank set out an overhaul agenda, which included the creation of a new asset and wealth management division, which forced it to review parts of this business.
Sal Oppenheim was fully integrated in to Deutsche Bank in Germany on 20 November 2012. In December 2012, Deutsche Bank integrated Sal Oppenheim into its wealth management business under the umbrella of Deutsche Bank Switzerland.
The bank said it is bundling the activities concerning high net worth private clients and institutional clients together under the same expertise, in the belief that it will strengthen the wealth business. Deutsche Bank (Switzerland) CEO, Marco Bizzozero said the move was laying the foundation for continued growth in a market environment that remains difficult.
