Before the German investment firm Deutsche Bank announced a breathtaking round of global layoffs on Monday that led to a drop in stock prices, it quietly relocated more than 2,000 jobs from New York City to Jacksonville, Florida, as it turned out.
After being almost 1,000 miles from Wall Street and the center of the financial universe, thousands of employees at the Jacksonville bank are afraid that they will be next on the Hackblock as 18,000 receive the pink receipt worldwide.
Florida employees were lured south with promises of dramatically lower living costs, meaning they could afford beach houses and the most exclusive private schools even with a steep pay cut.
The only catch is that it could be a one-way ticket – and Deutsche Bank employees in Jacksonville will now try so much harder to find work away from their competitors when layoffs hit the branch.
Although it is unclear how much Deutsche Bank has cut salaries for those who have moved, the average financial analyst in Jacksonville earns $68,400 a year compared to $110,300 in New York City, JaxUSA said.
However, the average house value in Jacksonville is $176,800, compared with $676,000 for all of New York City, including outer boroughs, according to data from Zillow.
It’s a choice many in the financial industry have faced in recent years, as Wall Street banks have delivered thousands of jobs to distant locations such as Salt Lake City, Tennessee and Texas.
On Tuesday morning, the state of Florida had not yet issued a dismissal notice regarding the Deutsche Bank office there, as required by state law.
A bank spokesman did not respond immediately to a DailyMail.com request for layoffs in Jacksonville.
But in its massive restructuring announced on Monday, Deutsche Bank said it plans to close all of its stock trading and reduce some of its fixed income business in an overhaul that will lead to 18,000 job cuts – one fifth of its 91,000 employees.
The cuts have spread across the globe, from the bank’s offices in Sydney and Hong Kong to London and New York.
According to the Jacksonville Daily Record, the Florida Operations Center will soon have equity trading and sales departments that will eat at least a portion of its staff.
The list of top employers of the local Chamber of Commerce states that Deutsche Bank has 2,250 employees in Jacksonville.
On Monday, employees posted on Wall Street were seen in the bank’s office leaving the building with large white envelopes containing their separation papers.
The New York employees affected by the cuts were called to the cafeteria to learn of their fate. A message in the lobby of the building told staff that the cafeteria would be closed until 11:30 a.m. The cafeteria was closed until 11:30 a.m. The staff were told that the cafeteria was closed.
Hundreds of employees were informed during meetings that their positions had been reduced, sources inside the bank said. They also received details of their severance packages. One source said they could see employees saying goodbye to their colleagues as they left the cafeteria.
Outside the bank’s office, an employee told Reuters that the cuts had been expected for weeks.
People have planned their next steps, but it’s a difficult market,” the person said, speaking on condition of anonymity.
Another employee, who asked not to be named, said the bank held a brief meeting in its auditorium at 9:30 a.m. to inform employees of the cuts.
He said he was later given an envelope informing him of his dismissal. The employee said he and his colleagues had known that the pending cuts in recent weeks were likely.
The German share price has fallen by 10 percent since Sunday’s announcement to cut 18,000 jobs in an $8.29 billion “reinvention. It is the largest two-day decline in nearly three years.
At 11:49 a.m. GMT on Tuesday, stocks fell 4 percent from the day after having previously fallen up to 6.5 percent. The bank’s bonds also fell.
Christian Sewing, CEO for just over a year, and his CFO are on a week-long roadshow to explain the restructuring. Sewing plans to invest a quarter of his fixed salary in German stocks, said a person with expertise.
Analysts and Investors