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June 9, 2022

Credit Suisse considers fresh layoffs after loss warning

Credit Suisse is considering another round of job cuts across its key business units after the warning of a second-quarter loss, reported Bloomberg News citing people familiar with the development.

According to sources, the scandal-hit Swiss bank is weighing layoffs across divisions including investment banking and wealth management across various regions.

Redundancies are likely as the bank prepares to update investors on risk, compliance, technology, and wealth management later this month, said the people whose identities were not revealed as the matter is private.

Credit Suisse had about 51,000 employees at the end of March, according to the report. Following a recent top management shake-up, the bank said its chief financial officer, legal counsel and head of Asia would all be either resigning or exiting the company.

It also hired Francesca McDonagh to lead its business across Europe, Middle East and Africa region.

A spokeswoman for Credit Suisse declined to comment on the job cuts.

Credit Suisse flagged a likely second-quarter loss this week, citing a slump at its investment banking and trading units as well as the widening credit spreads and client deleveraging amid volatile markets.

The bank said that it is accelerating cost initiatives across the group in a bid to maximise the savings from next year onwards.

Credit Suisse said in a statement: “We remain focused on the disciplined execution of our strategy, delivering on our regulatory remediation programs and placing risk management at the core of the bank. In doing so, we are focused on delivering best-in-class service and support to our clients, especially in this challenging market environment.”

Last month, a report by Reuters said that Credit Suisse was looking to beef up its capital base to recover from billions of losses last year and a number of costly legal troubles.

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