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August 5, 2022

Credit Suisse may layoff thousands of employees globally to resurrect business

Beleaguered Swiss wealth manager Credit Suisse is deliberating an option to cut thousands of jobs across the globe to reboot a sagging business, Bloomberg has reported.

The company, through this move, is looking to reduce overall cost by another $1bn.

Last month, the company started cutting front line positions in Asia as losses continue to widen, stated the news agency citing people familiar with the development.

The lender, which was employing 51,410 people by the end of June this year, is expected to take a final call on the job cuts in the next few months.

It is reportedly reviewing the performance of its middle and back-office staffs as well as initiating plans to restructure its investment banking division.

Sources familiar with the development told the news agency that Credit Suisse plans to sack people gradually in the next few years.

A Credit Suisse spokesperson was quoted by Bloomberg as saying: “We have said we will update on progress on our comprehensive strategy review when we announce our third quarter earnings; any reporting on potential outcomes before then is entirely speculative.”

If finalised, the jobs cuts could be the highest after the initiative taken by ex-CEO Tidjane Thiam in 2016. Thiam axed approximately 6,000 positions in the bank following unforeseen losses on trading platforms.

Last week, Credit Suisse named Ulrich Koerner, who was previously serving as the head of its asset management unit, as group CEO after the bank posted a massive loss of $1.6bn in Q2 2022.

Credit Suisse has been witnessing a series of exits and aims to fully overhaul its loss-making investment banking unit. It could lead to attrition and business departures as well as reduce the number of employees, the Bloomberg report added.

The number of employees at the bank rose by over 2,000 after 2020 as it hired more people for its compliance unit.

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