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German bank Berenberg cuts 55 jobs from its London office

Berenberg has axed 55 bankers from its London office in the second round of job cuts following a drop in profits.

The investment bank confirmed similar cuts in the city in August which affected 30 people and has now cut more roles.

Sources said staffers were notified about the move on Tuesday, 13 December.

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About 12.5 percent of its London workforce have lost their jobs.

However, other locations in Europe remain unaffected.

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They are divided between its research department and its investment banking division, which mainly focuses on deals in the equity capital markets.

After the reductions, Berenberg will have about 400 employees in its investment banking operations.

During the summer, it also eliminated about 50 workers at its New York office.

READ MORE: META TO SUBLET PART OF DUBLIN HEADQUARTERS AFTER CUTTING 11,000 JOBS

Berenberg also cut around 50 employees in its New York office during the summer.

David Mortlock, managing partner at Berenberg said: “2022 has been a challenging year for our industry including multi-decade lows in capital markets activity. 

“Whilst we expect to be more active in 2023, we are realistic about the speed of this recovery. 

“As such, we have moved early to ensure our investment bank is right-sized whilst continuing to deliver top-tier service to our institutional and corporate clients.”

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Berenberg is expected to generate €300m in revenue this year, a decline of 36 percent last year, when it made a record €470m. 

It has evolved from a small investment bank in 2010 that mostly served German clients to a major mid-market player that has operated in 12 countries in 2022.

After the redundancies, its research operations will have about 80 analysts covering 750 stocks.

It is still one of the bigger teams in London.

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Banking giants have refrained from making major cuts to their dealmaking teams after a hiring spree that saw a swarm of senior staff hired and given sky-high bonuses.

Just 12 dealmakers were let go in London despite Morgan Stanley’s plans to cut jobs by 1,600 or trim two percent of its staff.

Since September, top banking firms like Barclays, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, and Morgan Stanley slashed their dealmakers.

Currently, Credit Suisse is undertaking a cost-cutting drive leading to 2,700 jobs lost before the year's end.

Source: Financial News

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