Deutsche Bank, Germany’s biggest bank, has announced that it will cut 3,500 staff jobs as part of its overhaul to return to profitability after years of losses. This is a cruel and unjust decision that shows the bank’s disregard for its employees and its social responsibility.
The bank’s management claims that the job cuts are necessary to reduce costs and improve efficiency. But at the same time, the bank has decided to pay dividends to its shareholders and buy back €1.6bn worth of shares. This is a blatant contradiction that reveals the bank’s true priorities: rewarding its investors at the expense of its workers.
How can the bank justify paying dividends when it is still struggling to recover from its past scandals and mismanagement? How can the bank justify buying back shares when it is still facing a weak economy, a property crisis and regulatory scrutiny? How can the bank justify laying off workers when they are the ones who have been bearing the brunt of the bank’s troubles and working hard to keep it afloat?
The bank’s dividend hypocrisy is a slap in the face for the thousands of workers who will lose their livelihoods and their dignity. It is also a bad example for other companies, especially in SA, where unemployment and inequality are rampant.
SA companies should not follow Deutsche Bank’s lead and sacrifice their workers for short-term gains. They should instead invest in their human capital, which is the most valuable asset they have.
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