Date
21 October 2017
The cost-cutting plan is intended to free up resources for investment in Asia. Photo: Reuters
The cost-cutting plan is intended to free up resources for investment in Asia. Photo: Reuters

Credit Suisse plans up to US$2.1 bln in cost cuts

Credit Suisse Group A.G. is firming up potential job cuts as part of plans to save as much as 2 billion Swiss francs (US$2.1 billion).

That is about 7 percent to 10 percent of annual costs, according to Bloomberg.

The plan, described by senior managers as “well advanced”, is expected to free up resources for investment in Asia.

Credit Suisse has 46,000 employees worldwide at the end of the second quarter, up 3.3 percent from June 2014, according to its website.

Chief executive Tidjane Thiam, 53, who took over from Brady Dougan in July, also plans to decentralize operations, moving the more expensive services to cheaper regions.

And chief financial officer David Mathers will be relieved of his role as head of IT and operations, Swiss newspaper SonntagsZeitung is reporting in a separately.

Zurich-based spokeswoman Charlotte Nelson, contacted by Bloomberg, said Credit Suisse does not comment on media speculation.

The group is also considering selling stock in an offering that may raise 6 billion Swiss francs to 8 billion francs, people with knowledge of the discussions said Oct. 9.

The bank plans to proceed with the sale after presenting a new strategy to investors later this month, said one person, who asked not to be identified because the matter is private.

– Contact us at [email protected]

RA

EJI Weekly Newsletter

Please click here to unsubscribe