Credit Suisse to Cut 300 Jobs in Swiss Retail, Private Banking

Credit Suisse to Cut 300 Jobs in Swiss Retail, Private Banking
A visitor enters the Credit Suisse Group AG headquarters in Zurich. Photographer: Gianluca Colla/Bloomberg

Credit Suisse Group AG, Switzerland’s second-biggest bank, plans to cut 300 jobs as it merges retail and private-banking units in Switzerland, Hans-Ulrich Meister, who heads business in the country, said in a memo.

The merger will take effect Jan. 1 and the new unit, named wealth management and private clients Switzerland, will be led by Christoph Brunner, Meister said in the memo, the contents of which were confirmed by Marc Dosch, a spokesman for Zurich-based Credit Suisse. The move will save about 50 million Swiss francs ($52.8 million) in annual costs.

“The growing cost of doing business means that we have to conduct our business even more efficiently than ever before,” Meister said in the memo.

Credit Suisse last month said it aims to trim a further 1 billion francs in annual costs by the end of 2015, adding to a 1 billion-franc savings program announced in July and a 2 billion-franc expense reduction achieved since last year. The bank saw margins in its wealth management business fall to the lowest in at least five years in the third quarter.

The bank also plans to invest in business with so-called premium clients and external asset managers, Meister said.

“We have high ambitions for these segments that address sophisticated client needs and the demand for a tailored value proposition,” he said, adding that this business will be led by Rolf Boegli.

Brunner has been heading private-clients business in Switzerland since September 2011, while Boegli was appointed chief operating officer for private banking at the same time last year.

Finews reported the contents of the memo earlier today. Arthur Vayloyan, who’s been heading private banking in Switzerland, will leave the company, Finews reported, without saying where it got the information.

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