SWISS bank Credit Suisse is to cut senior staff in its European investment banking department by up to a third, sources said yesterday, as tighter regulation and weak markets hit the sector.
“In the European investment banking business, they are going to get rid of 60 directors and managing directors,” one said.
The investment banking department affected advises on mergers and acquisitions, stock market listings, financing and debt issues, as opposed to other areas of the broader investment bank that focus on securities trading.
“It is about a third of the directors and 10-15 per cent of the MDs,” the first source said.
The layoffs would happen in July, this person said. The formal redundancy process can last several months.A second source said the cuts could affect 20-30 per cent of senior investment banking staff in Europe.
Credit Suisse declined to comment. Last year it announced a plan to cut about 3,500 jobs worldwide and eliminate $2.1bn (£1.3bn) in annual costs by the end of 2013 in its three major areas of private banking, asset management and investment banking.
City A.M. Reporter