Credit Suisse Group AG (NYSE:CS) is set to lay off 10% of its European investment bankers as things continue to go from bad to worse for the Swiss lender.
Rumours of a takeover by fellow Swiss bank UBS were also quelled at the weekend as its chairman Colm Kelleher confirmed it had no interest in an acquisition.
Credit Suisse reported pre-tax losses of roughly US$2.05bn in the nine months to September 2022, with reports of job cuts by the Financial Times coming ahead of full-year results on February 9, where final quarter losses are expected to hit US$1.6bn.
Chief executive Ulrish Körner outlined a series of strategic overhauls in October aimed at bringing the crisis and scandal-stricken bank back from the brink of disaster.
These included the splitting up of its investment banking operation, a US$4bn cash injection and root and branch restructuring.
“Our new, integrated model will be focused on Wealth Management, the Swiss Bank, as well as Asset Management, and we will radically restructure the Investment Bank, strengthen capital, and accelerate our cost transformation,” he outlined.
Interest from Saudi National Bank in December marked some positive news for Credit Suisse, as it was promised US$1.5bn in return for 9.9% of its business, while ex-Barclays chief executive Bob Diamond also reportedly eyed investment in the bank.
However, job cuts look set to become a feature of this reshuffle, with Kromer previously suggesting its staff numbers would be reduced from 52,000 to 43,000 amid ongoing cost-cutting efforts.
Last year also saw Credit Suisse was found guilty of failing to stop money laundering by a Bulgarian cocaine ring, a first for a Swiss bank.