Credit Suisse to cut 540 jobs in Switzerland by 2023

“We will cut 2,700 jobs worldwide, including 20% in Switzerland, by the end of the fourth quarter of 2022,” Credit Suisse CEO Ulrich Körner told the NZZ am Sonntag newspaper on October 30. © Keystone / Michael Buholzer

The embattled Swiss bank Credit Suisse plans to shed 540 jobs in Switzerland by the end of the year, Chief Executive Officer Ulrich Körner told the NZZ am Sonntag newspaper. In the interview he gave more details on last week’s restructuring announcement.

“We will cut 2,700 jobs worldwide, including 20% in Switzerland, by the end of the fourth quarter of 2022,” Körner toldExternal link the NZZ am Sonntag newspaper on October 30.

On Thursday the bank unveiled major restructuring plans in an effort to recover from a run of heavy losses. It announced that it would cut a total of 9,000 jobs worldwide by the end of 2025 – including 2,000 in Switzerland – selling off parts of its business and raising billions in extra capital in a bid to reverse a downward spiral in fortunes.

Credit Suisse is also raising CHF4 billion ($4 billion) to shore up its wobbling capital base by issuing new shares. This includes a CHF1.5 billion capital injection from the Saudi National Bank, subject to the approval of an extraordinary general meeting scheduled for November 23.

Such a decision would have no influence on the identity of the bank, Körner told NZZ am Sonntag. The shareholders have no influence on the management of the company or on its ethical principles, he said, “Saudi National Bank is a shareholder like any other, an important shareholder of course.”

Credit Suisse has suffered a string of setbacks in recent years by being on the wrong end of soured business deals and courtroom battles. Management is attempting to stop the rot with a radical overhaul of the bank’s operations and strategy.

The new strategic thrust is intended to bring costs down by 15% in the next three years and place a greater emphasis on the group’s wealth management and Swiss-based operations.

Significant parts of the group’s investment banking activities, mainly based in the United States, will be sold off to both raise cash and reduce its exposure to risk.

A new ‘Capital Release Unit’ has been set up specifically to sell off any assets that the bank now deems too risky and of low strategic importance.

Switzerland’s second largest bank has recorded nothing but losses over the last 12 months and posted a huge CHF4 billion loss for the third quarter of 2022. Most of this sum is attributable to a tax related charge resulting from its restructuring drive.