Credit Suisse Said to Cut 175 London Jobs Ahead of Investor Dayby and
Swiss bank is cutting costs, pulling back from debt trading
Chief Executive Thiam is reducing heacount by 6,000 this year
Credit Suisse Group AG is cutting about 175 jobs in London this week to lower costs, part of its overhaul that sees the lender focusing more on wealth management, according to three people with knowledge of with the matter.
The measures will bring the bank closer to a previously announced goal of eliminating about 6,000 jobs this year and scale back the global markets business, said one of the people, who like the others asked not to be identified because the information is private. A large number of Credit Suisse’s employees in London work in the investment bank.
A spokesman for Zurich-based Credit Suisse declined to comment.
Chief Executive Officer Tidjane Thiam, who is scheduled to update investors on a year-old turnaround plan next week, is under pressure to deepen cost cuts at the Swiss bank. Credit Suisse has been pulling back from costly debt-trading after losses on high-risk bets flared up earlier this year. A slump in its equities business, which the lender said it wants to grow, has added to difficulties at the global markets unit.
As of last month, the company still had to eliminate about 600 positions this year to reach its headcount goal and push costs below a target of 19.8 billion francs ($19.5 billion) in 2016.