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Tuesday, January 31, 2023
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Tuesday, January 31, 2023
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    Credit Suisse could cut 10pc of European investment bankers

    ZURICH (AFP) – Credit Suisse could slash more than 10 per cent of its investment banking staff in Europe, the Financial Times (FT) newspaper reported, with the beleaguered Swiss lender declining to comment yesterday.

    Switzerland’s second-biggest bank “already let hundreds of staff go in London and Zurich last month”, the British financial daily reported on Saturday.

    The Zurich-based bank declined to comment when contacted by AFP.

    “Consultations over the next round of redundancies started before Christmas, with more than 10 per cent of investment banking jobs in Europe under discussion,” the FT said, citing unnamed sources with knowledge of the talks.

    “A final decision is expected next month,” the newspaper said.

    Switzerland’s second largest bank Credit Suisse in downtown Geneva. PHOTO: AFP

    Credit Suisse launched a vast restructuring plan in October, including shedding 9,000 jobs by 2025 – more than 17 per cent of its workforce.

    Shaken by a string of scandals, the bank intends to refocus on the most stable parts of its business and radically overhaul its investment banking arm, which has suffered heavy losses.

    Among the changes, it is reviving its First Boston brand, named after a United States (US) investment bank it absorbed in 1990, where its capital market and advisory activities will be brought together.

    Credit Suisse is due to release its annual results on February 9. But the bank has already said it expects a pre-tax loss of up to CHF1.5 billion (USD1.6 billion) in the fourth quarter.

    The bank is pinning the loss on restructuring costs, shocks on the capital markets which will weigh on its investment bank, and on customers withdrawing capital.

    Credit Suisse shares were up 0.74 per cent at CHF3.15 at 0920 GMT, while the Swiss stock exchange’s main SMI index was up 0.44 per cent.

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