A major banking group has announced plans to cut thousands of jobs.
Credit Suisse will cut its workforce by 9,000 over the next three years. It comes as the company is pushing ahead with massive cost-cutting measures in its investment banking division.
The Swiss-based banking giant said it wants to cut its cost base by 2.5 billion Swiss francs (£2.2 billion), or 15% of its total costs, by 2025. To save money, it plans to cut 2,700 full-time equivalent jobs, or 5 % of its global workforce is already underway.
Credit Suisse has an office in the UK and employs 5,500 employees. The group plans to reduce its workforce to 43,000 by the end of 2025.
The banking group has been hit by a series of scandals in recent years. Including the Greensill Capital scandal in 2021.
How many jobs are being cut at Credit Suisse?
Credit Suisse has announced that it will reduce its global workforce by 9,000 while moving forward with massive cost-cutting measures. In an effort to save money, the investment giant is already working on plans to cut 2,700 full-time equivalent jobs, or 5% of its global workforce.
In total, the company said it expects to lose about 9,000 employees by the end of 2025 as a result of layoffs and natural attrition — meaning it won’t replace certain roles when people choose to leave. This would bring it to a total workforce of around 43,000.
Credit Suisse has more than 150 offices around the world, including a main branch in London, and has 5,500 employees in the UK.
Why does Credit Suisse cut jobs?
The downgrade is part of the group’s plan to reallocate nearly 80% of its capital toward its core, higher-yielding businesses, including its wealth and asset management arms and its Swiss bank. It said this meant it would cut costs and restructure its investment banking business to create a simpler and more stable bank.
The cost reduction program will go deeper than previously stated in order to improve efficiencies in the long term. Credit Suisse Chairman Axel P. Lehmann said the bank had left no stone unturned in assessing its future direction.
He said: “Today we announce the result of that process – a radical strategy and a clear implementation plan to create a stronger, more agile and efficient bank with a solid foundation, focused on our customers and their needs. I am convinced this is the blueprint for success, helping to rebuild trust and pride in the new Credit Suisse with Creating value and achieving sustainable returns for our shareholders.”
Who can be affected by work cuts?
Credit Suisse will significantly reduce the size of its investment bank, Times Now News reports. The company will cut its workforce by 9,000 over three years.
The group can be divided into four sections. These include wealth management, investment bank, Swiss bank, and asset management.
According to reports, the investment bank division will face the brunt of the job cuts. The company has more than 150 offices around the world, including a main branch in London. The bank employs 5,500 employees in the UK.
Credit Suisse has already started laying off jobs in the last quarter of this fiscal year. It plans to cut 2,700 jobs.
How have Credit Suisse share prices been affected?
Times Now News reported that it expects a pre-tax loss of $1.6 billion for the fourth quarter. Investment bank Credit Suisse reported a loss of CHF 3.7 billion in 2021 and consolidated that with a loss of CHF 992 million in the first half of 2022.
Bloomberg shows that Credit Suisse’s share price is currently at 3.65, which is up 0.83%.