CREDIT Suisse has announced it will slash 1,500 jobs as part of an overhaul that will see it refocus away from its traditional European bond trading business and towards high-growth markets in Asia and South America.
The losses will fall most heavily on its fixed income and credit business, following deep job cuts already in its equities division.
And City A.M. understands that the job cuts in its London and New York offices are likely to run into the hundreds – one source familiar with the situation estimated cuts of 750 between the two cities.
In all, the move will shave three per cent off its headcount globally and is meant to boost annual cost savings from SFr1bn (£704m) to SFr1.2bn.
The decision came as the bank announced that nine-month pre-tax profits at its investment bank more than halved to SFr1.28bn.
Chief executive Brady Dougan said: “I am convinced that being a first mover in adapting to a new regulatory and market environment is a distinct advantage... We will allocate resources to faster-growing and large markets, especially Brazil, south east Asia, Greater China and Russia.”
The bank now has a new target to draw a quarter of revenues from those markets by 2014, versus 15 per cent now.
Credit Suisse’s private banking business also saw nine-month pre-tax profits drop by 28 per cent to SFr1.88bn. But earnings rose 44 per cent at its smaller asset management division, reaching SFr466m.