As the German megabank culls tens of thousands of jobs as part of a “restructuring” that’s also the biggest Wall Street bloodletting since Lehman’s collapse, it appears Deutsche Bank has hit on a strategy to attract more top talent, or at the very least compensate remaining employees for the inherent risks that come with working at DB.
CEO Christian Sewing is taking a different tack from JP Morgan and Goldman Sachs, who have already moved most of their traders and other investment banking personnel back to offices in the US and Europe (though in London, workers are back to working from home on orders of the prime minister). So far, JPM’s embrace of working at the office has given employees plenty to grumble about.
According to Bloomberg, the bank’s leadership is working on a new “hybrid model” that would allow staff to split time between home and the office. In addition to making life easier for employees (especially women), the measures would help save costs for DB, which can then lease less office space.
Eventually, employees will have “binding agreements” written into their contracts governing how they can work from home, according to Bloomberg.
The new policies will eventually allow employees to have binding agreements on how many days per week they want to work away from the office, a person familiar with the matter said. The lender has developed estimates of how big a share will work from home, according to the person, who asked not to be identified discussing internal planning.
Deutsche Bank is joining lenders such as Mizuho Financial Group Inc. and Fifth Third Bancorp in cutting office costs after the coronavirus pandemic forced a large number of employees to work from home. Its top executives have repeatedly said they’ve been positively surprised by how little the shift has affected productivity, an assessment not all Wall Street companies are sharing.
DB’s long-suffering shareholders can probably appreciate Sewing going against the grain in a way that, although it might anger some potential clients,