Swiss private banking giant Credit Suisse is reportedly planning to lay off half of the employees at its investment banking arm in mainland China, media firm Caixin has reported.

The report comes barely a few weeks after the Swiss group concluded the deal to acquire a majority stake in its Chinese securities joint venture (JV).

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The revamp initiated by the group included setting up a new management team. The company appointed veteran investment banker Janice Hu as the head of the majority-owned JV Credit Suisse Founder Securities (CSFS).

This position was formerly helmed by Gao Li.

CSFS employed 154 people as of the end of 2019, of which, 85 were housed in the investment banking division.

As a part of the new retrenchment plans, the JV will lay off half of the investment banking staff.

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Caixin’s report added that Credit Suisse will “probably parachute in staff from its Hong Kong operations to fill some of the vacancies.”

Following the major overhaul, CSFS is also expected to be renamed as Credit Suisse Securities.

Last year, the JV reported suffered a net loss of CNY41.8m ($6m) as against CNY35.5m ($5.1m) loss in 2018.

The losses were attributed to the regulatory issue faced by the JV and financial problems faced by Peking University Founder Group, the parent company of Founder Securities.

In April, the Swiss wealth manager secured the nod of the China Securities Regulatory Commission (CSRC) to raise its holding in its China JV Credit Suisse Founder Securities (CSFS) to 51% from 33.3%.