Deutsche Bank AG unit BHF told staff it will shed 270 jobs, two sources close to the bank said, as the parent company struggles to sell the unit.
“A modernisation plan foresees continued layoffs over the next four years,” a letter sent to BHF employees, which was obtained by Reuters on Thursday, said.
BHF declined to comment.
Earlier this month talks to buy BHF stalled after German regulator Bafin asked RHJ International to withdraw its offer, sources told Reuters.
In July, RHJ International said it was in exclusive negotiations with Deutsche Bank to acquire BHF, adding it planned to finance the purchase with the support of co-investors.
The costs of funding BHF once it is split from Deutsche Bank have risen due to strains in the inter-bank lending market, a factor that has deterred potential partners for co-investor Kleinwort Benson.
German daily Handelsblatt was first to report that BHF is cutting 20 percent of its workforce in the wake of several failed attempts to sell the lender.
Deutsche Bank has been on the lookout for a buyer ever since it inherited BHF through the 1 billion euro purchase of Sal. Oppenheim in March 2010.
Deutsche Bank's initial plan to sell BHF to LGT, owned by the royal family of Liechtenstein, was scuppered in April after the deal was blocked by German regulator BaFin.
BHF is a 150-year-old institution with roughly 1,350 employees and 40 billion euros ($55.2 billion) in client assets under management. - Reuters