- Bank said to start laying off about 200 traders in London
- Most jobs said to be eliminated in fixed-income business
Credit Suisse Group AG will begin laying off about 200 traders in London on Thursday as Chief Executive Officer Tidjane Thiam seeks to cut thousands of jobs worldwide and restructure the trading and advisory services, a person with knowledge of the matter said.
Most of the jobs will be eliminated in the bank’s fixed-income business, which includes primary dealing and market-making activities, said the person, asking not to be identified because the matter is private. The Zurich-based bank said last month that it will stop making a market in government bonds across Europe, instead shifting the focus of its so-called macro business to foreign exchange. A spokesman for the bank declined to comment.
Chief Executive Officer Tidjane Thiam last month unveiled plans to restructure the bank along geographical lines, cut as many as 5,600 jobs and focus more on wealth management while shrinking and splitting up the investment bank. The CEO, who took over from Brady Dougan in July, has already warned investors that 2016 would not be a good year after reporting a drop in third-quarter profit that missed analyst estimates.
The job cuts were first reported by the Times of London.
The world’s biggest banks are shrinking their bond-trading activities to comply with regulations such as higher capital requirements imposed following the financial crisis. Credit Suisse withdrew from the U.K. primary-dealer market last month, with macro expected to shrink to about a quarter of its current size after the revamp.
Credit Suisse plans to cut about 1,800 back-office jobs in London, with some people being relocated to low-cost countries such as Poland.
The bank’s trading businesses outside Asia and Switzerland were combined in a global markets division, led by Tim O’Hara, under Credit Suisse’s new structure. Thiam also broke up the bank into new divisions that are more regionally focused and reshuffled the management, naming six new members of the executive board.
The shares have dropped about 4.2 percent this year.