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September 2, 2022

Credit Suisse weighs nearly 5,000 layoffs to reduce costs

Credit Suisse is mulling the option to axe around 5,000 positions in a bid to lower its expenses, reported Reuters citing a source familiar with the matter.

If materialised, the retrenchment will account for approximately one role out of ten people.

The latest plan highlights the tough times being faced by the Swiss wealth manager. It is also expected to help the bank recover after it got entangled in a series of setbacks.

Credit Suisse refused to make any comment on the possibility of job cuts. The bank reiterated that it would inform about its moves regarding its policies in its third-quarter results report, the news agency noted.

The bank termed the current year as a transition year. It made changes to its senior leadership in a bid to reduce challenges in investment banking and concentrate on its wealth management business.

Late last month, Credit Suisse appointed Dixit Joshi as its new CFO and Francesca McDonagh as the group COO.

The bank rejected any notion of sale off or dissolvement.

According to the source, Credit Suisse is yet to take a final call on the redundancies and the number of cuts may vary.  

Previously, Swiss newspaper Blick stated in a report that the bank could layoff over 3,000 people.

In July this year, Credit Suisse replaced its group CEO Thomas Gottstein with Ulrich Koerner after it posted $1.6bn loss in Q2 2022.

Koerner was asked to downsize the investment banking unit and reduce over $1bn in expenses to facilitate its recovery, stated Reuters.

Early last month, Bloomberg reported that Credit Suisse might cut thousands of jobs globally.

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