Credit Suisse to slash staff by 2,000 in UK

Log Pile

By laying off staff or moving posts offshore.

Credit Suisse is to cut about 2,000 jobs at its London operation, either by laying off staff or moving posts offshore.

The cuts, part of a $6.3bn (£4.1bn) restructuring plan introduced by the new chief executive, Tidjane Thiam, which involves slimming down the group’s investment bank, including axing about a third of the posts at Credit Suisse’s London office.

The move could see 1,800 back-office jobs offshored to Poland or India, the group’s employees heard on Wednesday. Estimates suggest there are currently 6,600 people working for the Swiss-owned bank in London.

The cuts are part of a plan to reduce the bank’s cost base worldwide. There will be 1,600 job cuts in Switzerland and 2,000 roles will go in the US, where the Credit Suisse’s private bank will be transferred to Wells Fargo. The bank wants to shave around 10% off its cost base.

The downsizing comes ahead of likely retrenchment in London for Deutsche Bank, which is making a strategy announcement on 29 October.

The cuts comes at a time when big banks are thinking carefully about their presence in London in the run-up to the vote on whether the UK should remain part of the EU. Banks are working on scenarios in which many of their operations are moved away from London in the event of a vote to exit.

Powered by Guardian.co.ukThis article was written by David Hellier, for theguardian.com on Wednesday 21st October 2015 12.09 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010

 

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