Lockdown has caused many companies and businesses to cut off their expenses. Likewise, many companies laid off their employees to cover up the finances.
This didn’t stop only businesses or industries but also banks. Deutsche Bank recently laid off several of its employees and staff within its division as the company was facing beatings over the years.
This decision was firmly made on Wednesday and focused mainly on junior rank employees. Among them was Mason Parker who was made to resign from the bank. He was employed at Deutsche for over 20 years. He served the company as a managing director in the finance department. However, both the bank and Mason refused to comment on the matter to officials.
A total of 20 junior rank employees and a handful of senior staff from the bank were fired this week, according to the New York Post. Although there was the recruitment of employees in many banks in their workforce including Goldman Sachs Group and Morgan Stanley in the United States, the revenue fell to about 57 percent of Goldman Sachs Group and 55 percent of Morgan Stanley.
Because of the downfall, Goldman used a technique of “look at bottom performers”. In this strategy, the company looked for the employees who performed very weakly in the period or who had no record of progress to cut them off from the bank.
Another strategy used by Morgan Stanley was “looking after headcount”. In this, the company focused on the number of people employed.
The year 2022 has been hard for both private and public markets. The condition is so worse that the International Monetary Fund (IMF) has issued a notice that the global economy could land in recession next year.
The reason behind it is the rising inflation and elevated interest rates making it almost impossible for companies to raise funds which ultimately results in slower growth of the market.
Currently, Banks have been facing a decrease in Initial Public Offering (IPOs), stocks, acquisitions, and many more as the market falls. Other firms including Apollo and Blackstone etc are facing tougher environments.
Although 2021 was full of moments with large capital and huge market stock, 2022 proved to be a little non-profit for banks due to several factors like the Russia-Ukraine War, tensions between the US and China, and many more, which led to the fall of the market in the second half of the year.
