Deutsche Bank is following in the footsteps of major U.S. banks and tightening its working from home rules – Switzerland included, finews.ch learns. However, the largest employers in the Swiss financial industry support flexible working.

Banking behemoth Deutsche Bank has adopted a revised «hybrid» working model in Switzerland and will begin implementing it from June 2024 – a move that is currently making a lot of waves.

Under this policy, staff at the foreign bank will work remotely for up to 40 percent of their time, and can work either on a Monday or a Friday from home, but not on both days. Managing directors in more senior roles will have to be in the office four days a week, a spokeswoman for Deutsche Bank said in response to a request from finews.ch.

Uprising in the Intranet

Following the decision by Germany’s largest bank, stricter working from home rules will soon apply. This was justified in a memo personally signed by CEO Christian Sewing who cited the «inefficient» use of its office real estate. Another reason, according to the internal communication made public by news agency Bloomberg (article behind paywall), is to ensure a more even presence of staff throughout the week.

The mood among the Deutsche Bankers has therefore turned sour, German newspaper Handelsblatt (article behind paywall) reports. More than 1,300 of the 10,000 plus affected employees are reported to have complained about the stricter rules on the bank’s intranet.

In Good Company?

But bank executives pushing for a greater staff presence after the forced easing of restrictions during the pandemic are themselves in good company. Not only Deutsche Bank, but also major Wall Street banks like Goldman Sachs and Citigroup are tightening up working from home policies, Bloomberg reports. So are the employee-friendly practices, as seen at many Swiss financial service providers since 2020, now on their way out?

For example, larger banks are also thinking about how to better utilize their commercial properties and have already taken steps, says HR expert Stephan Surber, head of Page Executive Switzerland, in response to a request. Measures could involve terminating leased spaces, or asking employees to come into the office more frequently.

Goodwill Still Prevails

A spokesperson confirmed that the Zurich-based investment firm Vontobel regularly reviews its homeoffice approach to determine whether it still meets the needs of the company. Employees have the opportunity, after consulting with their managers and reviewing their tasks, to work from home for up to two days a week.

Zurich Cantonal Bank (ZKB) lets staff with an employment level of at least 50 percent regularly work from home on one to two days a week, provided it is in line with customer needs and operational and regulatory requirements. But this is only possible in Switzerland. No adjustments are currently planned, a spokeswoman says.

Widespread «Two-day Rule»

Upon request, private bank Julius Baer said staff with a 100 percent employment level can work from home two days of the week and be in the office on the other three. The bank therefore follows the two-day rule commonly found in the industry.

At banking giant UBS in Switzerland, a large number of employees have been working in a hybrid model since April 2022. In general, employees highly value flexibility – including hybrid and part-time working, job-sharing, annual working hours, and purchasing vacation days – a spokesperson for the market leader told finews.ch.

But in light of the ongoing integration of Credit Suisse and the impending downsizing affecting thousands of roles in Switzerland, any entitlement to working from home is likely to be at the bottom of the list of employees’ concerns at the «new» UBS.

Flexible Insurance

But the insurance industry appears to be one of the bastions of flexible working. Reinsurer Swiss Re still permits working from home and is not planning any changes to current practice. At universal insurer Zurich, it is reported that employees like to work from home two to three days, with two to three days at one of the locations or on-site with customers. Zurich Switzerland has conducted a number of internal surveys on future working models, a spokesperson confirms.

«The office is still a place where people come together, shaping the company’s culture and serving as an important part of teamwork,» Surber from Page Executive says. But ordering all employees back into the office is not a solution and could even potentially lead to layoffs. Companies therefore need to carefully consider what they want to achieve with their working from home policies and whether this would benefit the company as a whole.

Real Estate Experts Raise Alarm

The persistence of working from home has not passed on by the office and commercial property market without leaving a mark – quite the opposite. In its study «Empty Spaces and Hybrid Places,» respected strategy consulting firm McKinsey forecasts the value of office properties will fall by 800 billion dollars (about 720 billion Swiss francs) by 2030.

There is currently a high supply of office space to let in Switzerland. According to a survey by real estate services provider CBRE, demand has recently softened significantly, resulting in empty spaces.

It is clear from the 2024 office market study by real estate service provider JLL that things have changed. Construction activity in Switzerland in 2024 and 2025 is expected to involve only half as many new building sites than in the period from 2019 to 2023. But there was a slight increase in available office space in 2023. That makes the market structure fragile – although Switzerland is an oasis of bliss compared to other countries.