Narayan AmmachchiGermany’s biggest lender Deutsche Bank AG is considering cutting staff at its equities divisions in several Latin American countries, according to Bloomberg, although it is unclear precisely how many jobs will be lost.
The news comes almost a month after the Bank of America announced the closure of its three foreign offices in Latin American countries, laying off nearly 3,000 employees. Deutsche Bank will not eliminate staff in Mexico but will completely close its equity business in Chile.
“The lender is eliminating staff for that business in Sao Paulo, Santiago and New York,” reported the news wire, quoting unnamed sources.
In October, Deutsche Bank hired Armando Armenta as a Latin America economist covering Colombia, Peru and Venezuela, according to the same report.
The lender’s investment banking business has slowed down since January this year because of political uncertainty in Ukraine. The bank had also expressed concerned about slowing economic growth in Germany and China.
“Deutsche Bank has made 2014 a make-or-break year as it cuts costs, slashes its balance sheet and works through a long list of scandals,” says Reuters.
In 2012, the investment bank decided to make Latin America an independent division to focus on Brazil and Mexico. It is believed that the firm has about 740 full-time employees dedicated to Latin America, including 200 in New York. It also has staff in Argentina, Brazil, Chile, Peru and Mexico.
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