Troubled Swiss lender to axe thousands of jobs

Credit Suisse is planning a major overhaul aimed at restoring the bank’s credibility

Swiss banking giant Credit Suisse on Thursday announced plans to slash 9,000 jobs and sell off its deal-making unit. The announcement follows a series of scandals and billions in losses.

According to the bank, it is cutting 2,700 jobs in the final quarter of 2022 and will reduce employee numbers by 9,000 by the end of 2025. This is around 17% of the company’s workforce of 52,000. The bank will raise around $4 billion in fresh capital to fund the overhaul.

Credit Suisse will also revive its First Boston name — the US-based investment bank it acquired in 1990 — as it separates its deal-making unit from the rest of the investment bank.

The overhaul is an urgent attempt to restore credibility at Credit Suisse. The bank racked up billions of dollars in losses from the 2021 collapse of hedge fund Archegos and financial services firm Greensill. This, along with the bank’s management chaos, shattered its status as one of Europe’s most prestigious lenders.

READ MORE: Swiss bank guilty of laundering drug money – media

Credit Suisse has since reshuffled its management team, suspended share buybacks and cut dividend payments.

Earlier this month, the embattled lender said it was selling the landmark five-star Savoy Hotel in Zurich’s financial district for as much as 400 million Swiss francs ($404 million). The offloading of the asset has further raised investor concerns about the bank’s financial health.

Find more stories on economy and finance in TROIB business