Credit Suisse Plans Up to 2 Billion Francs Cost Cuts, SaS Says

  • `Well advanced' money-saving plan may include job reductions
  • Measures to allow group to expand investment in Asia

Credit Suisse Group AG has “well advanced” plans to cut costs by 7 percent to 10 percent, which would translate into an annual reduction of as much as 2 billion Swiss francs ($2.1 billion) for the group, Schweiz am Sonntag reported, citing several managers of sub-units in the bank.

The plan, which may include job losses, is “an essential tool” that would allow Credit Suisse to free resources for investment in Asia, the newspaper reported, citing a “senior” unnamed person in the group. Credit Suisse employed 46,600 people at the end of the second quarter, a 3.3 percent increase from June 2014, according to its website.

Chief Executive Officer Tidjane Thiam, 53, who took over from Brady Dougan in July, also plans to decentralize operations, moving the more expensive services to cheaper regions, SaS reported.

Chief Financial Officer David Mathers will be relieved of his role as head of IT & operations, Swiss newspaper SonntagsZeitung reported in a separate story.

Credit Suisse doesn’t comment on media speculation, said Zurich-based spokeswoman Charlotte Nelson when contacted by Bloomberg News.

The group is also considering selling stock in an offering that may raise 6 billion Swiss francs to 8 billion francs, people with knowledge of the discussions said Oct. 9. The bank plans to proceed with the sale after presenting a new strategy to investors later this month, said one person, who asked not to be identified because the matter is private.

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