Deutsche Bank's planned overhaul has been stalled by the fallout from the covid-19 outbreak, according to reports.
The Financial Times reported today that the German lender sent a memo that sought to pause any new redundancies in an effort to "avoid additional emotional stress in the current environment."
The bank was seeking to lay off some 18,000 positions in a series of cuts to be rolled out since last year. Deutsche Bank last year announced plans to shed 18,000 jobs and to create a "bad bank" to spin off $83bn in unwanted assets.
Until the outbreak of covid-19, Christian Sewing, Deutsche Bank's CEO, was said to be on course to realise €280bn of savings and cuts to non-performing part of the business.
Deutsche Bank is not the only major lender in the midst of a drawdown as the coronavirus crisis widens. Last week HSBC was also forced to rethink its planned 35,000 job cull due to the widening pandemic.
According to Reuters, the bank is currently discussing whether it will waive bonuses for its management board in 2020 due to the fallout from the covid-19 crisis.
The European Banking Authority on Tuesday recommended that banks be "conservative" in how they award bonuses to preserve capital and keep lending to an economy hit by the outbreak of covid-19.