Credit Suisse cutting 2,700 jobs in fourth quarter, expects more by 2025
The bank released details about its 'transformation plan'
Former FDIC Chair Sheila Bair discusses Credit Suisse's issues as the U.S. faces economic challenges and how the Fed will keep financial systems 'stable.'
Credit Suisse Group AG is reducing its workforce by 5% in the fourth quarter and plans to trim its headcount even more by 2025, the company said Thursday.
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The 5% fourth-quarter reduction amounts to 2,700 full-time-equivalent employees, according to a press release from Credit Suisse. The bank said it expects to further cut its total workforce to roughly 43,000 by the end of 2025.
Credit Suisse said it had roughly 52,000 full-time-equivalent employees at the end of the third quarter, for which the bank reported its earnings Thursday.
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The plans to reduce its headcount came as Credit Suisse released details about its "transformation plan."
The plans to reduce its headcount came as Credit Suisse released details about its "transformation plan." (Spencer Platt/Getty Images / Getty Images)
Credit Suisse will spin off its capital markets and advisory activities into CS First Boston and "allocate almost 80% of capital to Wealth Management, Swiss Bank, Asset Management and Markets," among other measures, it said. (REUTERS/Arnd WIegmann/File Photo / Reuters Photos)
The bank will spin off its capital markets and advisory activities into CS First Boston and "allocate almost 80% of capital to Wealth Management, Swiss Bank, Asset Management and Markets," among other measures, it said. The Saudi National Bank has "committed to invest" up to 1.5 billion Swiss francs into Credit Suisse, according to the Swiss bank.
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The plan aims to "create a stronger, more resilient and more efficient bank with a firm foundation, focused on our clients and their needs," chairman Axel Lehmann said in a statement, adding that Credit Suisse will "remain absolutely focused on driving our cultural transformation, while working on further improving our risk management and control processes across the entire bank."
The plan aims to "create a stronger, more resilient and more efficient bank with a firm foundation, focused on our clients and their needs," according to Credit Suisse chairman Axel Lehmann. (REUTERS/Brendan McDermid / Reuters Photos)
For the third quarter, the company reported 3.8 billion Swiss francs in net revenues, climbing 4% quarter-over-quarter but falling 30% year-over-year. It had a net loss of 4.03 billion Swiss francs.