Credit Suisse Said to Cut 180 London Jobs, Mostly in Tradingby and
Credit Suisse Group AG is carrying out a fresh round of job cuts in London, shrinking its workforce by about 180 employees this week, most of them in the trading unit, two people said.
About 130 employees lost their jobs in the global markets unit, including as many as 50 in equities and about 80 in the fixed-income business, said one of the people, who declined to be identified. The person said the remaining cuts occurred across support functions like information technology and human resources. Another person said the bank plans a further round of job cuts next month.
A spokeswoman for the bank in Zurich, Anuschka Ross, declined to comment. Credit Suisse had said it would eliminate 6,000 jobs globally this year, with 3,200 still to go as of March 23.
Switzerland’s second-biggest bank is downsizing its securities unit as part of an overhaul shifting its focus to wealth management. Chief Executive Officer Tidjane Thiam was forced to deepen his restructuring plans in March, after a tumultuous start to the year showed that the bank was still too vulnerable to market risks.
The bank is expected to post its second consecutive quarterly loss when it reports earnings next week, hit by restructuring costs and writedowns on trading positions.
The layoffs in equities mostly affect the derivatives business, a third person said. The derivatives platforms for equities and fixed income were combined as part of the new strategy, leading to some overlap.
Credit Suisse’s stock has declined more than 45 percent since Thiam, 53, joined Credit Suisse from British insurer Prudential Plc in July, much of it during an industry-wide selloff this year.
Thiam tapped shareholders for about 6 billion francs in November to fund the bank’s restructuring. Since then, market turmoil has complicated his plan, leading to almost $1 billion in writedowns over the last two quarters.
The CEO said last week that restructuring efforts will continue to weigh on the bank’s performance this year.
“We are building our platform for the future,” he said at the bank’s annual meeting in Zurich on Friday. “That can seem like a tough task, and one that rarely wins many plaudits in the short term, but it is the only path that will lead to success in the long term.”