Bloomberg quotes unnamed 'people familiar with the matter', who have said that job losses are likely at CSFB as the firm seems certain to merge units in the wake of the recent strategic review of the business. New York is expected to bear the brunt of any staff cuts, although it is thought that no region would be safe from the axe.
The results of the review are said to have already been presented to the main Credit Suisse Group board and investors will be advised of the findings on December 7th. According to The New York Times, an unnamed person who was involved in the review said that there was a general realization that CSFB can't be 'all things to all people' and that the firm covers 'too many clients and (doesn't) get enough penetration'.
During the course of the review itself, speculation has intensified that, in addition to the likely job cuts, Credit Suisse may well decide to drop the 'First Boston' name from its investment banking arm. A move like this would be seen as yet another indication that Group is determined to get the division back under its control.
Although the changes afoot at CSFB will be painful for some, a radical change of focus is thought to be needed. The firm has been losing market share for some time and has struggled to contain costs. According to Bloomberg, in the second quarter CSFB ate up 91% of every dollar earned in costs. Most other rival firms came in with a ratio at anywhere between 71% and 76%.
CSFB's third quarter earnings are due out later this week and are not expected to make good reading.