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Credit Suisse to Slash up to 6,500 More Jobs in 2017

February 16, 2017

Delivering on his turnaround plan for Switzerland’s second-biggest bank and pushing its agenda for major restructuring this year, Chief Executive Tidjane Thiam plans to bolster the group’s capital by slashing upto 6,500 more jobs in 2017.

Holding onto an optimistic sentiment this year, the Bank is looking at additional job cuts, after suffering from $2.43 billion net loss in 2016.

Addressing a press conference Thiam said, “We are now well-placed to capture growth and benefit from improving market conditions as a result of the tough actions we took in 2016,” Reuters reports.

Having taken over the role at Credit Suisse some 18 months ago, Thiam has been on a cost-cutting drive while shifting the business towards wealth management and placing less emphasis on investment banking. The bank earlier cut 7,250 jobs in 2016 and said there would between 5,500 and 6,500 more will this year. It employed around 47,000 people at the end of 2016.

While not specify the segments of the business that will be affected by the job cuts, Credit Suisse said they would include contractors, staff and consultants.

The Zurich-based lender said the bulk of the loss resulted from a $2 billion provision it made for a settlement with the U.S. Department of Justice. The Justice Department announced in January that Credit Suisse would pay a total of $5.3 billion to settle claims that it packaged and sold toxic mortgages between 2005 and 2007.

The bank further reaffirmed plans to sell 20 to 30 percent of its Swiss business in an IPO, thus brushing off talks from some investors and analysts that the bank would reconsider the stake sale. However, its flotation depended on market conditions and board approval.

Also read: Credit Suisse Ready to Splash More Cash to Lure Best Bankers and Retain Star Recruits

Image credit: financialexpress.com

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