Wall Street cuts after German bank relocates jobs to Frankfurt
Commerzbank has announced that it will be cutting jobs on Wall Street in order to streamline and concentrate its business on “centres of competence” across the world. The Wall Street Journal reported that the German bank, which has been operating for 150 years, will be eliminating the jobs at its New York office. This will mean a loss of about 100 back office jobs and maybe ten front office jobs. The company will be outsourcing some of its operations and reducing the number of financial activities it engages in.
Who Are Commerzbank?
Commerzbank is a leading European financial institution. It has over 100,000 corporate clients in Germany alone, and it has more than 70 branches spread across 50 countries. They offer investment and corporate banking services, especially to companies involved in international trade. It is partially state-owned. It is Germany’s second-largest lender by market capitalisation.
The decision to cut the jobs in New York may coincide with Britain voting to leave the European Union and the upheavals that has caused in the financial industries across the world, but in fact the decision was made sometime before. As long ago as January, before Brexit was even considered a real possibility, Commerzbank had moved 70 trading jobs to Frankfurt in Germany after a restructuring of its London office. It stated that the purpose of the realignment was to concentrate on different “centres of competence” around the globe.
The head of Commerzbank’s investment banking arm, Michael Reuther, said that the company was restructuring its operations in order to pursue this strategy in North America. He went on to emphasise that Commerzbank still regarded North America as “an important international hub”.
Commerzbank is not the only big bank making changes and cutbacks in the light of changing industry rules and a slow trading environment. Other banks are also transferring and restructuring jobs and moving to different locations across the world.
How Will This Affect Finance Recruitment?
Commerzbank’s decision to concentrate its operations in several “centres of competence” rather than remain in New York means that there will be new job opportunities arising – in Frankfurt, for example, and in other cities across the world. In turn, this means that key strategic positions will need to be filled, and executive search companies and their finance headhunters will be in fierce competition to supply the required personnel.
Finance recruitment companies will be looking for people to help Commerzbank, and other organisations, with their mission to change the way they work. This means that there will be new roles, as well as new ways of organising the companies and new locations, all of which means that executive positions will be available and will need to be filled promptly.