Credit Suisse Said to Cut About 100 Jobs in U.K.
Credit Suisse Group AG (CSGN), the second- largest Swiss lender, is eliminating about 100 jobs at its U.K. investment-banking unit as it presses ahead with cost-cutting plans, said three people with knowledge of the reductions.
The lender is trimming jobs in businesses including equities and advisory, said the people, who asked not to be identified because the moves are confidential. The bank started informing the affected employees last week, the people said.
Credit Suisse named Gael de Boissard co-leader of the investment bank with Eric Varvel last week and said it will merge asset management with the private bank to accelerate cost cutting. The Zurich-based bank announced plans last month to trim a further 1 billion francs ($1.08 billion) in annual costs by the end of 2015, on top of a 1 billion-franc savings program from July and a 2 billion-franc expense reduction achieved since last year.
“The recently announced reorganization, including integration of asset management into private banking, should also allow for additional cost savings over and above the 4 billion francs target,” Citigroup analysts, including Kinner Lakhani, said in a note to clients today.
The bank’s job reductions may spread to the rest of Europe, one person said. A Credit Suisse official declined to comment.
Chief Executive Officer Brady Dougan, in an interview last week, declined to say how much the bank expects to save through the latest revamp and how many jobs may be cut. The bank had 9,200 employees in Europe, the Middle East and Africa, excluding Switzerland, at the end of last year.
The bank is sticking with a fully-fledged investment bank as UBS AG (UBSN), the largest Swiss bank, embarks on a plan to cut 10,000 jobs and shrink debt trading to focus on money management. Dougan said last week that Credit Suisse has already adapted the securities division to stricter regulation and will look to expand the debt unit as some competitors retrench.