You are here: Home » International » News » Companies
Business Standard

Credit Suisse in revival mode, may cut thousands of jobs globally

The bank, which began trimming front line roles in Asia last month, is mulling an aggressive plan to reduce its headcount, which stood at 51,410 at the end of June

Credit Suisse | job cuts

Ambereen Choudhury Cathy Chan & Myriam Balezou | Bloomberg 

Photo: Bloomberg
Photo: Bloomberg

Group AG executives are discussing reducing thousands of roles globally as the struggling European lender seeks to slash its overall cost base by an additional $1 billion.

The bank, which began trimming front line roles in Asia last month, is mulling an aggressive plan to reduce its headcount, which stood at 51,410 at the end of June, said people familiar with the matter, who asked not to be identified discussing personnel matters.

is expected to finalize its plans over the next couple of months and is examining inefficiencies in the bank’s middle and back office in addition to the efforts to reshape its investment bank, the people said. Estimates being discussed include cutting several thousand roles over a number of years, the people said, adding that the plans are preliminary and no final decision has been taken.

“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,” a spokesperson for the Zurich-based lender said.

The cuts are likely to be the deepest since former chief executive officer Tidjane Thiam slashed around 6,000 roles across the firm in 2016 in the wake of unexpected losses on trading positions. appointed asset management head and former UBS Group AG executive Ulrich Koerner to lead the bank last week, replacing Thomas Gottstein in an effort to steer the lender back to profitability after scandals and losses.

Koerner served as UBS’s chief operating officer during a four-year period after the financial crisis that saw that firm slash headcount by about 15,000.

Credit Suisse has seen a string of departures and has pledged to fundamentally reshape its unprofitable investment bank, so attrition and business exits could bring down headcount in addition to active . The firm’s staff has climbed by more than 2,000 since the end of 2020, in part as it hired more employees in compliance.

The company has been seeking a turnaround after the blow-ups of Archegos Capital Management and Greensill Capital undermined confidence, weakened key businesses, and spurred an exodus of talent. The Zurich-based bank has changed its entire executive team and half its board of directors in the past 18 months in an effort to move past the crises.

The lender last month said it aims to trim its overall cost base to below 15.5 billion francs ($16.1 billion) in the medium term, going well beyond a target of 16.5 billion to 17 billion francs set out in late 2021. The firm reported 16.6 billion francs of adjusted operating expenses over the 12 months ended in June. Including litigation and restructuring costs, the firm’s total expenses in that period were 20.5 billion francs.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, August 04 2022. 22:24 IST