Credit Suisse to shed 9,000 staff in ‘radical’ cost-saving programme

The banking giant said its plans to axe 2,700 full-time equivalent roles, or 5% of its global workforce, are already under way.

Anna Wise
Thursday 27 October 2022 11:57 BST
Investment bank Credit Suisse has said it will slim down its global workforce by 9,000 as it ploughs ahead with huge cost-cutting measures (Alamy/PA)
Investment bank Credit Suisse has said it will slim down its global workforce by 9,000 as it ploughs ahead with huge cost-cutting measures (Alamy/PA)

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Investment bank Credit Suisse has announced it is to slim down its global workforce by 9,000 as it ploughs ahead with huge cost-cutting measures.

The Switzerland-based banking giant said it wants to reduce its cost base by 2.5 billion Swiss francs (£2.2 billion), or 15% of its total costs, by 2025.

To save money, plans to axe 2,700 full-time equivalent roles, or 5% of its global workforce, are already under way.

In total, the firm said it expects to lose around 9,000 employees by the end of 2025 as a result of redundancies and natural attrition – meaning it will not replace certain roles when people choose to leave.

This will leave it with a total workforce of about 43,000.

Credit Suisse has more than 150 offices around the world, including a major branch in London, and employs 5,500 staff in the UK.

The company did not confirm which locations will be affected by the job cuts.

The reduction forms part of the group’s plan to reallocate almost 80% of its capital towards core, higher-return businesses, including its wealth and asset management arms and its Swiss Bank.

This means it will be reducing costs and restructuring its investment bank business to create a more simplified and stable bank, it said.

The cost-cutting programme will “go deeper and further” than previously indicated in order to improve long-term efficiencies.

Credit Suisse’s chairman, Axel P Lehmann, said the bank is leaving “no stone unturned” in assessing its future direction.

He said: “Today we are announcing the result of that process – a radical strategy and a clear execution plan to create a stronger, more resilient and more efficient bank with a firm foundation, focused on our clients and their needs.

“I am convinced that this is the blueprint for success, helping rebuild trust and pride in the new Credit Suisse while realising value and creating sustainable returns for our shareholders.”

It came as the bank also confirmed leadership changes as it prepares to spin off its investment arm, CS First Boston.

Michael Klein will step down from the board of directors to as an adviser to the group’s chief executive, Ulrich Korner, to help launch the spin-off.

Meanwhile, chief executive of its investment bank, Christian Meissner, “has decided to leave the bank, effective immediately”, it said on Thursday.

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