German banks are cutting people in New York today
It's not just Barclays that's cutting staff in the fourth quarter. Both Berenberg and Numis have also announced fourth quarter cuts today.
Berenberg is cutting 20 people in New York who were publishing research on US mid-cap shares, according to a memo seen by eFinancialCareers.
Numis is thought to have cut around 10 people in NYC, although this has not been confirmed.
In the memo to staff, David Mortlock, Berenberg's managing partner said the firm has been covering around 100 US mid-cap stocks for five years but has decided that the "cost of scaling this coverage is not justified by the revenue opportunity." It's therefore focusing on its European business instead.
Berenberg was one of the first banks to cut heads last year. However, it has latterly been adding analysts in areas like TMT and real estate equity research in London. It also has a new head of UK M&A arriving next year.
Numis, meanwhile, has just merged with Deutsche Bank, which has been enthusiastically adding senior M&A bankers globally. Henrik Johnsson, co-head of EMEA investment banking at Deutsche Bank, told Global Capital recently that the Deutsche Bank-Numis merger is, "not about cost synergies — it’s about revenue synergies." Deutsche Bank is still growing the advisory side of the business, said Johnsson. The US cuts at Numis are thought to be in equity sales.
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