Deutsche Bank outsourcing continues as it decides to move nearly 60 accounting jobs from its Jacksonville, Florida office to India’s business capital Mumbai.
According to a report, the move is part of the bank’s strategy to slash costs.
Deutsche Bank outsourcing
Deutsche Bank management intends to outsource more jobs from the US to India this year, the publication reported quoting unnamed sources.
Currently, Deutsche Bank is scaling down its US operations. However, this has been marred by multiple scandals and dull performance.
In an email to Bloomberg, Deutsche Bank spokeswoman Kerrie McHugh said: “We regularly review our footprint and look for ways to raise operational efficiencies that enhance client experience and improve shareholder returns.
“Our presence in Jacksonville is an essential part of our regional footprint in the Americas, and we place great value in our Jacksonville operations.”
Last May, Deutsche Bank informed its staff about the decision to close its Houston office and shifting its New York City headquarters from Wall Street to Midtown. It is also reducing its presence in the US city of Chicago.
All major lenders in the US have started shifting key operations from New York City to cheaper US cities.
Big moves for Deutsche Bank
In August last year, it was reported that Deutsche Bank is planning to trim 1,000 jobs from retail banking division at its headquarters in Germany.
In addition, it is rumoured that Deutsche Bank could soon merge with Commerzbank.
The German government may acquire majority stake in Deutsche Bank and then facilitate the merger between the two entities.
Other scenarios include Deutsche Bank raising funds to purchase Commerzbank or creating a holding company which will own both the banks, the report added.
Recently, there were various speculations on the possible Deutsche Bank-Commerzbank merger. However, it was repeatedly refuted by the Deutsche Bank’s top management.
Deutsche Bank has witnessed record dip in its share prices owing to two money laundering cases and failure to revive its businesses.
Deutsche Bank is also mulling to convert itself into a holding company. It will facilitate the merger or joint operations of specific business segments.
On the other hand, Commerzbank was bailed out by the government during the economic recession in the last decade.