February 16, 2011
By Staff Reporter
By Andrew Bushe
DUBLIN — The merger of two large German banks to create one of the world’s largest financial groups will result in worldwide layoffs that will likely hit the banks’ Irish subsidiaries.
The alliance of Deutsche Bank and Dresdner Bank will have assets of more than £1,200 billion sterling under its control.
A cost-savings program is expected to lead to a worldwide layoff of more than 16,000 staff from the combined workforce of almost 150,000.
There are also fears that the jobs of some of the 500 workers employed by the two companies in the Irish Financial Services Centre could also be at risk. Deutsche employs 450 and its former rival Dresdner has 50.
The merger takes effect July 1. It amounts to a virtual takeover by Deutsche Bank and will retain that name.
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Analysts are predicting further consolidation of the European banking sector as pressure mounts from technological changes and increasingly global markets. As a result of the huge falls in their shares, Irish banks are regarded as prime takeover targets for foreign predators.