Quoting unnamed 'people familiar with the matter', Bloomberg reports that CSFB may eliminate hundreds of jobs following its strategic review of the business. The results of the review are being made public early next week.
Rumours have been circulating for some time now that the firm would pull out of non-strategic or non-core areas and will focus instead on those businesses where it can be a top player. There are even thoughts that the 'First Boston' name may be dropped as Credit Suisse Group reins in its investment banking arm. It is now also thought that CSFB CEO Brady Dougan may announce next week that the firm will merge its equities and fixed-income underwriting and research groups in a bid to save on costs.
CSFB's expenses are said to have been running at 86% of revenue in the first three quarters, significantly higher than rivals like Lehman and Goldman. Credit Suisse Group CEO Oswald Gruebel has already articulated what he describes as a 'performance issue at CSFB', and many now think that he has the perfect opportunity to clear the decks and stamp his own authority on the investment banking business.
More should be known on 7th December, when Credit Suisse outlines its plans at an investor meeting.
Have something to tell us about this article?