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Deutsche Bank Tells Employees To Travel Less To Cut Costs
08-20-2018, 01:23 PM,
#1
Deutsche Bank Tells Employees To Travel Less To Cut Costs
Deutsche Bank Tells Employees To Travel Less To Cut Costs

<p>Forget the days of traveling first class to meet clients: Deutsche Bank, which following major management upheaval in the past year, is telling its employees to take the bus whenever possible.</p>

<p>In the latest indignity to befall the bank's employees, in a memo sent by Deutsche Bank CFO James von Moltke, the biggest European bank -<strong> if certainly not by market cap</strong> - urged employees to "take every opportunity to restrict non-essential travel" until the end of the year adding that "with your help, we will meet our cost-reduction targets."</p>

<p>As <a href="https://www.bloomberg.com/news/articles/2018-08-20/deutsche-bank-cfo-urges-staff-to-travel-less-to-hit-cost-targets">Bloomberg notes</a>, the travel curbs are the latest example of the cost-cutting drive under new CEO Christian Sewing, which has targeted perks such as first-class tickets - both for airplanes and trains - and even daily fruit bowls. Sewing vowed in April that he will keep expenses below 23 billion euros ($26 billion) in 2018, mostly by cutting at least 4,000 jobs by the end of the year, and likely many more.</p>

<p>Having failed at boosting revenue growth, losing many of its rainmaker MDs in a period in which the bank paid out no bonuses, the bank has instead decided on instilling a more austere attitude toward travel - an essential element of Sewing’s and von Moltke’s effort to cut non-compensation expenses.</p>

<p>It gets worse: in July the CFO asked all employees <strong>to submit their own cost-cutting proposals</strong>. More than 500 submissions were received during the first 24 hours.</p>

<p>"We are grateful for the many ideas contributed by employees,” von Moltke wrote in the memo. “Among these, travel expenditure is one of the most frequently-raised topics."</p>

<p>The good news, if not for the company's employees, is that DB's general expenses have tumbled to the lowest level since 2014, clocking in at €2.55BN.</p>

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