Credit Suisse to cut more jobs as it steps up overhaul plan
GENEVA – Swiss bank Credit Suisse is intensifying its restructuring efforts, announcing Wednesday greater cost cuts and plans to reduce headcount by another 2,000.
The bank cited “disappointing financial results” because of a combination of a high, inflexible cost base, exposure to illiquid fixed income assets, tough market conditions and “historically low levels of client activity.”
Credit Suisse said it is now targeting cost reductions of at least 4.3 billion Swiss francs ($4.4 billion) by 2018, up from 3.5 billion francs previously. Savings of 1.7 billion francs are expected this year.
The company now plans to cut 6,000 jobs, of which 2,800 have already taken place. Last month the company said it was cutting roughly 4,000 jobs to reduce costs after announcing a massive pre-tax loss in the fourth quarter.
Shares in the bank were up 2.4 per cent at 14.67 Swiss francs in morning trading in Zurich.
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