Credit Suisse is undergoing cost-cutting measures under new chief Ulrich Koerner, with thousands of Zurich-based jobs now reportedly at risk.
Around 5,000 jobs could be axed at Credit Suisse, according to a «Reuters» report citing unnamed sources, equivalent to about 10 percent of the workforce. A report by German newspaper «Handelsblatt» placed the estimate at up to 4,000 jobs, adding that its Zurich headquarter would account for a significant portion of the cuts.
Separately, a report by Swiss newspaper «Blick» said that there are plans to offload 3,200 jobs in Zurich.
«We have said we will update on progress on our comprehensive strategy review when we announce our third quarter earnings,» said a spokesperson for the bank. «Any reporting on potential outcomes before then is entirely speculative.»
Cost-Cutting Drive
The cuts are part of broader plans to reduce $1 billion in costs to help the bank recover from a series of scandals and quarterly losses. According to Deutsche Bank, Credit Suisse is facing a capital gap of at least 4 billion Swiss francs ($4.1 billion) to improve its financial strength, fund a restructuring and support growth.
Separately, the Swiss lender is also in Singapore this week to discuss the scale of downsizing for the investment bank and a potential retreat from the China market.
