Deutsche Bank sacked more than 20 junior investment bankers and a number of senior executives in New York this week as mergers and acquisitions deals have dried up, the New York Post reports.

Investment banking business is down as much as 50% at some banks. In addition, the German bank is also girding for the origination of fewer loans, especially in mortgages, sources told the Post.

Investment banks have not had to lay off workers on a large scale in years, though Deutsche Bank did axe underperformers during COVID.

“There was a real shock factor with this round of layoffs,” an insider told the Post. “There are so many people who have never been through a downturn.

“This was a proactive effort to rein things in,” the source continued. “This is a repositioning for where the bank is — it’s about aligning with the market.”

Like other investment banks, Deutsche is reluctant to cut senior bankers. “It takes 15 years to make a managing director, and when the market turns again, you need that capacity to ramp up again,” the insider said.