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Deutsche Bank May Slash Bonuses by Almost One-Third

Deutsche Bank AG may cut the bonus pool for its investment bank by as much as 500 million euros ($566 million), or almost a third, as co-Chief Executive Officer John Cryan seeks to slash costs in the securities unit, according to people with knowledge of the matter.

No decision has been taken and the biggest reductions are likely to impact employees in the fixed-income business, said one of the people, who asked not to be named as the information isn’t public. Some managing directors may have their entire bonus scrapped, according to the person. Deutsche Bank paid staff at the securities unit 1.7 billion euros of variable compensation for 2014, the Frankfurt-based firm’s filings show.

Cryan, 54, who took over from Anshu Jain in July, indicated earlier this month that bonuses may be cut after saying the company will report a third-quarter loss of about 6.2 billion euros after writing down the value of the investment bank and other assets. The bank is also considering suspending its dividend for the first time since Germany’s post World War II reconstruction in an effort to bolster capital.

The writedowns and dividend recommendation “have to...