According to the plan, a quarter of the division’s 400 UK employees are laid off, with their roles shifted to Dublin, Berlin, Frankfurt and cities in Asia, according to people familiar with the decision.
Some London-based staff able to work in the EU may reapply for the job, but must accept a 25 percent pay cut, one added.
Financial services have been largely excluded from the UK-EU trade deal that went into effect in January, leaving some UK-based employees unable to directly serve clients in the Block of 27 members.
Deutsche had previously said it would displace a number “in the hundreds” of people from London – estimated at around 250 to 300 by people familiar with the matter. Changes to the corporate bank, headed by Stefan Hoops, will increase this figure.
The corporate bank offers its clients services ranging from basic loans and payments, including foreign exchange, trade finance and cash management.
Deutsche employs around 7,500 people in Great Britain. Although largely based in London, the lender has a growing office of around 1,000 support staff in Birmingham, with roles such as compliance, technology and human resources.
“We remain firmly committed to the UK, which will continue to be an important center for our corporate banking as well as our other divisions,” Deutsche said in a statement. “He will continue to serve our many UK corporate banking clients and provide services to our clients around the world.”
However, not all offshoring within corporate banking is a direct result of Brexit.
Deutsche is also using Britain’s exit from the EU as a wider opportunity to cut office costs in expensive cities such as London, move staff to cheaper locations, hire locally and bring closer the bankers of their regional clients.
The bank also has a political incentive to hire more employees in Frankfurt and Berlin, according to one person familiar with its plans, as it seeks to rebuild its reputation with politicians across the country.
For years it endured scandals and racked up billions in losses, but the bank has shown signs of improvement over the past 18 months under the leadership of chief executive Christian Sewing.
Deutsche is not alone in relocating employees from London. HSBC plans to move up to 1,000 merchants and support staff to Paris, while Citigroup is moving 250 people from London, including 150 to Frankfurt. Consulting firm EY estimates that London has lost 7,600 jobs and £ 1.3 billion in assets since the Brexit announcement.
But despite these changes, the British capital remains by far the largest financial center in Europe.
With Andrew Bounds reporting in Manchester