Deutsche Bank is, for the first time, contemplating asking its German employees to reduce their hours and take government cash instead as it attempts to stem the coronavirus crisis.
After years of losses, Germany’s largest bank has been attempting to engineer a shake-up that includes pulling back from a few of its international businesses; however, its recovery plan and share price have been affected hard by the pandemic.
Short-time work is a form of state relief that enables employers to move employees to shorter working hours during an economic slowdown to keep them on the payroll. It has been extensively used by trade, along with Germany’s automotive sector, however, not by banks.
Germany recently expanded its short-time work program to ease the pressure on firms during the coronavirus pandemic and Deutsche Bank is only one of several banks studying its options.
If Deutsche Bank implements the scheme, it might be more likely to mainly have an effect on these of its employees who work in branches that are briefly closed, perhaps several hundred of the bank’s 40,000-strong workforce in Germany, sources said.
Deutsche stated it was not at present utilizing short-time work; nevertheless, it was “inspecting whether and where it could be helpful”.