As per recent announcement made by Germany based multinational banking giant Deutsche bank earlier this week, Ioannis Pipilis resigns from his role of Global head of Fixed Income at the firm. The news of his resignation comes in less than week after the banking giant announced its plans on restructuring its bond trading business division. As per recent article published on same in Finance news London website, inside source had stated that the matter of Pipilis’ resignation has already been discussed and arranged with higher management at the firm for a while now. This move could also be viewed as a part of announcement made by the firm earlier this month regarding layoff plans as part of cost cutting and restructuring plans put into action by the bank’s CEO Christian Sewing.
As part of restricting plans, the control of the bank’s bond trading business division has been reassigned to Ram Nayak. Mr. Nayak has been part of the German lender for quite a while now and was promoted to role of co-president of corporate and investment banking back in May 2018. As part of restricting plans, the firm announced that over 18,000 employees will leave from the firm as a result of cost cutting measures. But a hard truth is that, only two departments suffers a significant impact of this cost cutting and restructuring plans namely – equities and fixed income departments. As per the plans, the total amount of capital allocated for these two departments will be reduced significantly owing to years of struggling and disappointing earnings reports from these two business units.
This has caused the bank to cut down on activity surrounding its investment banking activities via which the bank expects to save nearly 7.4 billion Euros (US $8.3 billion) per year. Pipilis is an industry veteran with decades of experience under his belt and was a part of Deutsche Bank’s family for nearly 19 years now. He joined the bank back in 2000 and was promoted to role of global head of credit structuring in 2007. He was promoted yet again in 2015 as global co-head of credit alongside Chetan Kuman Shah. It should also be noted that he is not the first long term executive to leave from the firm recently as earlier this month we reported about yet another executive of the firm resigning from high level management role– Garth Ritchie. The former deputy CEO & highest paid executive of the bank also resigned from the firm owing to issues stemming from this job cut and restructuring plans initiated by CEO Sewing.
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