Dismantling larger than planned?
At CS, every tenth investment banker should go
Credit Suisse will outsource much of its investment banking operations in First Boston. Numerous investment bankers will have to leave the bank by then. The job cuts are expected to be even greater than previously assumed.
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Bank in trouble: Credit Suisse will present a billion-dollar loss in February for 2022.
Credit Suisse is undergoing restructuring. For the employees, this means above all layoffs and these are now likely to be even greater than was previously known. The major Swiss bank is to cut every tenth job in European investment banking, as reported by the “Financial Times”.
In October, CS presented comprehensive restructuring plans, which could 9,000 of the 52,000 jobs worldwide fall victim to. Because the big bank is due to present its annual results on February 9, the bank is said to have tightened its reduction plans again. The big bank will have to present a loss of several billion francs.
Are the investment bankers getting nothing from the bonuses?
With a first wave of layoffs in December, CS already cut 2,700 jobs, 540 of them in Switzerland and 200 in London. There she runs her largest investment banking department next to New York. The bank currently employs around 17,000 people in investment banking worldwide. According to the Financial Times, CS will decide next month how many jobs it will cut in this area.
Those who are not fired are very likely to work for First Boston in the future. This is what the CS investment bank will be called after the planned spin-off.
As a further savings measure, the bank reduced the bonus pool by a third. Accordingly, only a few investment bankers should expect a bonus because of the annual loss. (smt)