Credit Suisse Reportedly Considers Laying off Around 5,000 Staff

Credit Suisse is considering cutting around 5,000 jobs, about one position in 10, as part of a cost reduction drive at Switzerland's second-biggest bank, according to a source with direct knowledge of the matter.

The scale of the potential job cuts underlines the challenge facing Credit Suisse and new chief executive Ulrich Koerner, who is seeking to put the bank back on an even keel after a string of scandals.

Credit Suisse has dubbed 2022 a "transition" year with a change of guard, restructuring to curtail risk-taking in investment banking and bulking up wealth management.

The Zurich-based bank has dismissed speculation that it could be bought or broken up.

The discussions about job cuts are ongoing and the number of reductions could still change, the source said. Swiss newspaper Blick earlier reported that more than 3,000 jobs would be shed.

Credit Suisse has already said it will cut costs below 15.5 billion Swiss francs ($15.8 billion) in the medium term, versus an annualised 16.8 billion francs this year.

So far, it has not outlined job cuts.

Koerner, promoted to CEO just over a month ago, has been given the task of paring back investment banking and cutting more than $1 billion in costs to help the bank recover from a string of setbacks and scandals.

(Sourece: TheStar)