Another blow to the financial market of Switzerland’s southern-most region of Ticino: a large foreign bank has decided to shutter its branch in Lugano, with dire consequences for some of the local staff.
After thorough evaluation of its strategy and the activities in Switzerland, Deutsche Bank decided to concentrate the asset management business in the two international financial centers of Zurich and Geneva. The company confirmed today’s reports in the Ticino media.
The customers served by the Lugano-branch of the German giant will have their relationship managers in Zurich. Some staff will receive jobs at other units of the bank, while other will be asked to leave.
Far-Reaching Restructuring
The big German bank is currently undergoing a far-reaching restructuring under the lead of CEO John Cryan and plans to remove 9,000 jobs by the end of next year. It also will reduce the number of branches. Deutsche in Switzerland has been active since 1980 and employs about 700 people in the country.
The bank has installed a European cross-border team in Geneva. It will consolidate European customer relations booked in Switzerland and act as a center of competence for the cross-border business with European clients (except Germany).
Switzerland Remains Key Market
Despite the decision to shutter the operations in Lugano, Switzerland will remain a key market for Deutsche and the bank aims to further develop its wealth management in the country.
The decision is another blow to the Italian-speaking region of Switzerland after the forced closure of Banca Svizzera Italiana (BSI) last year.
The number of full-time-equivalent jobs in the Ticino has declined to 6,782 last year.
