Deutsche Bank announced Tuesday that it is freezing plans to create 250 jobs at its Cary campus because of the state’s recently adopted House Bill 2.
The company said in a statement that the legislation “invalidated existing protections of the rights of gay, bisexual and transgender fellow citizens in some municipalities and prevents municipalities from adopting such protections in the future.”
Deutsche Bank announced in September plans to add 250 jobs in Cary by the end of next year. The German company’s DB Global Technology subsidiary is eligible to receive as much as $3.38 million in state incentives over 12 years if it achieves its job targets. The new jobs were expected to pay an average salary of $85,600.
In 2009, Deutsche Bank made the decision to locate its global technology center in Cary, where the company now has 900 employees. The center tests software that the company uses at sites around the world for functions such as trading, managing orders and processing transactions. The bank has said it plans to up to 1 billion euros on digital initiatives over the next five years.
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Deutsche Bank said it is committed to sustaining its existing presence in Cary.
“We take the commitment to building inclusive work environments seriously,” John Cryan, Deutsche Bank’s co-CEO said in a statement. “We’re proud of our operations and employees in Cary and regret that as a result of this legislation we are unwilling to include North Carolina in our US expansion plans for now. We very much hope to re-visit our plans to grow this location in the near future.”
A bank spokeswoman said Tuesday the company would have no comment beyond its statement.
Deutsche Bank becomes the second major corporation to halt expansion plans in North Carolina because of HB2. Last week PayPal scrapped plans for a new Charlotte operations center that would have employed 400 people.
The potential economic impact of HB2 in the Triangle could grow if other financial firms follow Deutsche Bank’s lead. The region has become a major hub for financial services firms, including Fidelity Investments, MetLife and Credit Suisse.
The legislation has also led some some municipalities and states to ban nonessential employee travel to North Carolina. The Greater Raleigh Convention and Visitors Bureau released a report Monday saying that Wake County had lost out on an estimated $732,000 in economic benefits after four groups canceled plans to hold events in the county.