Germany-based investment bank Berenberg is set to layoff over 5% of its workforce in London in the midst of an impending recession, The Telegraph has reported.
The bank informed its employees that at least 30 jobs will be axed due to a smaller number of contracts and fear of downturn.
It currently employs approximately 500 people in its London office. The employees look after the banks’ administration and private wealth business, among others.
The Telegraph noted that it has gained access to an email sent to the employees by Berenberg managing partner David Mortlock.
In the email, Mortlock said: “Clearly 2022 is a much more challenging environment. In terms of equity issuance, it’s the quietest year since 2003 and one of the biggest [year-on-year] declines ever.
“In response, we have taken steps to ensure the cost base of our investment bank is appropriate. We materially slowed hiring at the beginning of the year, reset our US business in June and have now adjusted our European platform. We have also taken action to reduce central costs across the bank.
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By GlobalData“Although many of these decisions are difficult, acting early and decisively means we can be confident in the sustainability and gearing of our business heading into 2023 and beyond.”
A Berenberg spokesperson was also quoted by the news paper as saying that the bank has no intention to make any changes to its current workforce following the recent announcement to cut 50 jobs in the US. The US job cut was announced in June this year.
The spokesperson said: “We have postponed the staff growth planned at the beginning of the year for the time being due to geopolitical events and developments in the markets.”