Credit Suisse’s Big Slice: More Jobs Gone Than Anyone Expected
In the wake of client cash‑outflows and a sluggish business backdrop, Credit Suisse is trimming more than it first announced. According to insiders who prefer to keep their identities under wraps, the bank’s latest round of cost‑cutting will involve a heavier dose of layoffs—especially in its prized wealth‑management franchise.
Where the Crunch is Happening
- Hong Kong: Roughly 5 % of the private‑banking staff in the city are headed for the exit door. The cuts are sharpening toward mid‑ and junior‑tier bankers, far steeper than the earlier plan.
- Singapore: The other Asian hub is bracing for similar cuts, though details are still under wraps.
Credit Suisse didn’t comment on the Hong Kong moves, but the news is clear: the bank’s wealth‑management wing will feel the sting more than ever.
Cost‑Cutting Goals & Actual Numbers
In October, the bank set a target to slash its overhead by about 2.5 billion Swiss francs—about $3.6 billion—bringing the 2025 spend down to roughly 14.5 billion francs. The plan includes:
- – 2,700 jobs slated for elimination starting in Q4, largely from the beleaguered investment‑banking arm.
- – A total of 9,000 redundancies across a workforce that was 52,000 strong.
Why the Call for Cuts?
The bank’s recent “slow‑down” has left investors uneasy. In the six weeks up to November 11, clients drained around 6 % of the assets under management—an outflow that has tugged the liquidity of some entities below regulatory limits and knocked revenue. While the exodus has slowed, the deal just went live, with shares reaching a new low close to the price of a 2.24 billion‑franc rights issue designed to shore up the balance sheet.
Axel Lehmann, the chairman, reassured at a Financial Times forum that the exodus is largely temporary: “Very few clients have left entirely.” Still, the market is playing the knock‑on effect.
Moving Forward: The Wealth‑Focus Strategy
With the investment bank in a state of affairs, Credit Suisse is pivoting toward its “global wealth management” agenda, hoping the shift will give its clients something to smile about. Still, the deeper cuts in Hong Kong suggest the journey will require more grit than a casual walk in the park.
Takeaway
As the bank juggles layoffs, cost reductions, and a beleaguered portfolio, the headline takeaway is simple: more jobs are going, patience is needed, and the wealth arm may be the ticket to a brighter future.
