About 1,000 of Deutsche’s 8,000 employees in London will go after the German bank announced plans to cut 6,400 jobs worldwide.

Workers in IT, credit risk management, credit control and personnel will be among those bearing the brunt of the cuts, Josef Ackermann, chief executive, told analysts yesterday.

Other job losses will arise from the current mergers of the debt and equities departments and the corporate finance and global transactions departments.

The cutback is one of the biggest single culls at a London bank for years. In contrast with the 1980s and the early 1990s, when mass sackings were frequent, banks now prefer to shed staff in dribs and drabs to avoid bad publicity.

In recent years the biggest redundancy programmes in London have been at Credit Suisse First Boston, which shed 300 jobs, and ABN Amro, which cut about 240.

The Deutsche reduncancies, the first few of which began six weeks ago, would reduce costs by €800 million (£551 million) this year and €1.1 billion next year, Dr Ackermann said.

Deutsche refused to say where the axe would fall. However, of the 4,400 job cuts planned for outside Germany, the brunt will be borne in London and New York.

In London a figure of 1,000 job losses was described as “conservative” by one source.

The asset management division is braced for cuts as Deutsche disclosed it had lost mandates worth €20 billion last year. A review of the UK business, which Dr Ackermann said was responsible for the bulk of the losses, is under way.

The so-called Business Realignment Program would cost €1.3 billion in redundancy payments and other expenses, Deutsche said.

The bank is creating 1,200 jobs in low-pay areas such as the Philippines, India and eastern Germany, reducing the net reduction in jobs to 5,200.

Frankfurt-based Deutsche, Germany’s biggest bank, reported a 50 per cent increase in income before taxes to €4.1 billion, and raised the dividend by 13 per cent to €1.70.

The corporate and investment banking division, which represents the bulk of the London operation, boosted underlying pre-tax profits by 29 per cent to €567 million.

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