A major banking group has announced plans to slash thousands of jobs.
Credit Suisse will be cutting its work force by 9,000 over the next three years. It comes as the company ploughs ahead with huge cost-cutting measures in its investment banking division.
The Switzerland-based banking giant said it wants to reduce its cost base by 2.5 billion Swiss francs (£2.2 billion), or 15% of its total costs, by 2025. To save money, plans to axe 2,700 full-time equivalent roles, or 5% of its global workforce, are already under way.
Credit Suisse has an office in the UK and employs 5,500 staff. The group is planning to reduce its workforce to 43,000 by the end of 2025.
The banking group has been rocked by a series of scandals in recent years. Including the Greensill Capital scandal in 2021.
How many jobs are being cut at Credit Suisse?
Credit Suisse has announced it is to slim down its global workforce by 9,000 as it ploughs ahead with huge cost-cutting measures. In a bid to save money, the investment giant already is working on plans to cut 2,700 full-time equivalent roles, or 5% of its global workforce.
In total, the firm said it expects to lose around 9,000 employees by the end of 2025 as a result of redundancies and natural attrition – meaning it will not replace certain roles when people choose to leave. This will leave it with a total workforce of about 43,000.
Credit Suisse has more than 150 offices around the world, including a major branch in London, and employs 5,500 staff in the UK.
Why is Credit Suisse cutting jobs?
The reduction forms part of the group’s plan to reallocate almost 80% of its capital towards core, higher-return businesses, including its wealth and asset management arms and its Swiss Bank. This means it will be reducing costs and restructuring its investment bank business to create a more simplified and stable bank, it said.
The cost-cutting programme will “go deeper and further” than previously indicated in order to improve long-term efficiencies. Credit Suisse’s chairman, Axel P Lehmann, said the bank is leaving “no stone unturned” in assessing its future direction.
He said: “Today we are announcing the result of that process – a radical strategy and a clear execution plan to create a stronger, more resilient and more efficient bank with a firm foundation, focused on our clients and their needs. I am convinced that this is the blueprint for success, helping rebuild trust and pride in the new Credit Suisse while realising value and creating sustainable returns for our shareholders.”
Who could be affected by the job cuts?
Credit Suisse will be dramatically reducing the scale of its investment bank, Times Now News reports. The company will be cutting its work force by 9,000 over three years.
The group can be split into four divisions. It includes wealth management, investment bank, swiss bank and asset management.
According to reports the investment bank division will face the brunt of the job cuts. The company has more than 150 offices around the world, including a major branch in London. The bank employs 5,500 staff in the UK.
Credit Suisse has already started the job cuts in the fourth quarter of this financial year. It plans to cut 2,700 jobs.
How has Credit Suisse’s share prices been affected?
Times Now News has reported that it is forecasting pre-tax losses of $1.6bn for the fourth quarter. Credit Suisse’s investment bank reported a loss of 3.7 billion Swiss francs in 2021 and backed that up with a 992 million Swiss franc loss in the first half of 2022.
Bloomberg shows that Credit Suisse’s stock price is currently 3.65 and that is it up 0.83%.