Credit Suisse Said to Weigh Job Cuts in European Equities
Credit Suisse Group AG (CSGN), Switzerland’s second-largest bank, may trim jobs at the Europe, Middle East and Africa equities business, three people familiar with the plan said.
An e-mail was sent to staff in the region last week informing them of the start of consultations that may include cutbacks, two of the people said, asking not to be identified as the plan is private. The process will start in coming weeks, the people said. A Credit Suisse official declined to comment.
Investment banks operating in Europe, from Barclays Plc (BARC) to UniCredit SpA and Nomura Holdings Inc. (8604), have cut their equities businesses amid a decline in trading volumes and profitability. Credit Suisse, based in Zurich, is in the midst of a cost-reduction plan that seeks to save 4.4 billion Swiss francs ($4.8 billion) by the end of 2015.
Trading commissions in Europe have declined since peaking in 2009 and brokers aren’t planning for a rebound, consulting firm Greenwich Associates said in a report last month.
“The answer to the question ‘is there any relief in sight’ is simply ‘no,’” Greenwich Associates consultant Jay Bennett said in a statement accompanying the report.
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