Swiss investment bank Credit Suisse is cutting jobs in its Asia investment team amid losses and a dwindling outlook for the global economy, reported Bloomberg News citing with knowledge of the matter.
The Zurich-headquartered bank, which flagged a possible second-quarter loss last month, is slashing more than two dozen front-line roles at its investment banking arm in Asia.
The redundancies, which fell across businesses including deal-making and trading, are said to be in line with the bank’s accelerating global effort to cut costs.
The reductions are said to include the dismissal of about 10 client-facing bankers at its Greater China unit.
The bank also lost two senior managers, its China securities venture CIO Larry Tung and chief compliance officer Xu Yang, due to Covid-Zero policies as well as rising geopolitical risks, said the sources.
More job cuts are likely to follow in the fourth quarter, divulged one of the sources.
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Last month, Bloomberg reported that Credit Suisse is weighing layoffs at its key business units as the bank prepares to face its third straight quarterly loss.
The bank said that the loss is tied to a slump at its investment banking and trading units as well as the widening credit spreads and client deleveraging amid volatile markets.
Commenting on the job cuts, Credit Suisse said in an e-mailed statement to the news agency: “As with any organisation, employee attrition and turnover is a natural part of executing our business in a disciplined manner. Credit Suisse continually reviews and reallocates resources and human capital to meet evolving market opportunities.
“APAC is an important growth market for Credit Suisse and we are committed to investing in the region for the long term.”