Berenberg to cut 5% of London staff - report

(Sharecast News) - German investment bank Berenberg is reportedly axing more than 5% of its London employees.

According to The Telegraph, the bank told staff on Monday that around 30 jobs will be cut as deal-making dries up and recession fears mount.

A Berenberg spokesman told The Telegraph the bank currently has around 500 employees in London, including administrative staff and those working in its private wealth arm.

In an email to staff seen by the newspaper, David Mortlock, Berenberg's managing partner, 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.

"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 spokesman told The Telegraph: "After the reduction of 50 jobs in the USA, communicated in June, there are currently no other major changes in the number of employees beyond the usual adjustments that always take place.

"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."