Report: Credit Suisse to Cut Another 1,000 Jobs
Credit Suisse (NYSE:CS) is reportedly planning to announce on Tuesday that it will cut another 1,000 jobs as it restructures its troubled investment bank, according to reports from the Wall Street Journal and a Swiss newspaper.
The announcement is expected to follow dismal third-quarter earnings from the company's investment banking segment. Like its peers, the banking giant has been struggling to overcome weaknesses in the unit amid deepening debt problems in the euro zone.
The bank announced in July that it would cut 2,000 jobs, or 4% of its workforce, as part of a turnaround. Those cuts are expected to be taken largely from its investment banking unit.
The Swiss newspaper, Tages-Anzeiger daily, said the additional jobs set to be cut would be taken primarily from investment banking in the U.S. and London, but will also affect wealth management, according to a report by Reuters.
Credit Suisse would not comment about the job cuts to FOX Business. A spokeswoman for the company said it was “against the law” to report information in its earnings report ahead of time.
The bank will report third-quarter earnings on Tuesday.
The additional job cuts would come as the company tries to turnaround its investment bank and adapt to more stringent capital regulations - a trend seen across the industry.
Earlier on Monday, Barclays (NYSE:BCS) reported weaknesses from its investment bank amid global financial turmoil and said it will likely accelerate plans to axe jobs amid a company-wide cost savings initiative.
In August, Switzerland’s other large bank, UBS (NYSE:UBS) said it would slash 3,500 jobs to save 2 billion francs in costs.