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Credit Suisse to cut jobs as part of cost cutting globally

According to a report by SonntagsZeitung, Switzerland-based Credit Suisse Group AG is planning to implement measures that would help the company to cut costs. The bank is planning to implement widespread job cuts across various divisions. Founded nearly 166 years ago in 1856, Credit Suisse is one of the largest investment banks around the globe, with offices in all major financial capitals.

A few weeks ago, news agencies reported that the investment bank has decided to reduce the headcount of employees in its offices in the Asian continent.

The COVID-19 pandemic which was followed by severe economic crises around the globe forced Credit Suisse to take such a step.

More than 20 roles related to the bank were planned to be cut in order to reduce costs and expenses. The roles which were planned to be cut included trading, business dealing, etc.

Many economic analysts had at that time forecasted more job cutting in the financial firm.

In the final quarter, Credit Suisse underwent lots of financial and management challenges. When Archegos Capital Management defaulted on its loan repayment, Credit Suisse lost nearly 5.5 billion dollars. The chief risk and compliance officer of the Swiss-based bank reportedly left the banking company due to immense pressure created by the default of Archegos.

The investment bank later announced that the financial company would be raising 2 billion dollars in order to support its equity base. The new funding was planned to be raised as the new capital.

Another important financial event that caused disruption in the business activities of Credit Suisse was in March 2021 when the bank decided to shut down investment funds related to the supply chain industry. The majority of these investment funds were directly connected to Greensill Capital, which is a financial service company based in the UK and Australia.

Sir António Mota de Sousa Horta-Osório,, who was chairman of the Credit Suisse Group AG, resigned from the post following an internal investigation conducted by the bank. Antonio allegedly flouted rules and regulations related to COVID-19 in the United Kingdom.

According to unverified reports from sources in the bank, the top management of the investment and financial services bank is currently discussing how can the company implement large-scale cost cutting measures without disrupting normal activities.

The current cost structure of the bank is too large for the bank’s revenue potential.

There have been no comments or responses from the bank or its spokesperson so far regarding the news report.

As second-quarter earnings of the investment bank are expected to be released on upcoming Wednesday, economic analysts predict a net loss of nearly 411 billion dollars.

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