Deutsche Bank was at the forefront as Wall Street began “nearshoring” staff to cheaper cities across the U.S. Now, the German lender is moving some of those jobs to India.
The bank is offshoring about 60 accounting positions to Mumbai from its campus in Jacksonville, Florida, as it seeks to trim costs, people with knowledge of the matter said. It’s part of a larger shift, with management intending to move more jobs from the U.S. to India this year, one of the people said, asking not to be identified because the plans are private.
“We regularly review our footprint and look for ways to raise operational efficiencies that enhance client experience and improve shareholder returns,” Deutsche Bank spokeswoman Kerrie McHugh said in an email. “Our presence in Jacksonville is an essential part of our regional footprint in the Americas, and we place great value in our Jacksonville operations.”
Big banks have been shifting workers from New York City to places like Jacksonville and Salt Lake City, where offices are cheaper and employees typically earn less, but enjoy a lower cost of living. The pressure to go further is acute at Deutsche Bank, where Chief Executive Officer Christian Sewing is shrinking U.S. operations and making the firm leaner after years of scandals and lackluster performance.
In May, the bank told staff it was closing its Houston office and moving its New York City headquarters from Wall Street to Midtown, slashing its footprint in the city by 30 percent. In July, people briefed on the matter said Deutsche Bank would also cut dozens of employees in Chicago.
Front-office employees have made up about 5 percent to 10 percent of the broader Jacksonville operation. Overall, the outpost had continued to grow, with the bank saying in 2016 that it planned to add 350 additional workers to the 1,800 already in place. That compares with fewer than 100 employees in 2008.