Credit Suisse: Layoffs!


Update 11:45 PM: DealBook is reporting that the investment bank is laying off about 150 workers from its mortgage-backed securities unit. Sourced to "a person with knowledge of the matter."
Earlier reports: Credit Suisse is rumored to have laid off a massive amount of New York employees today. The whisper number for the layoffs was 400 people in New York. Two people familiar with the situation say that within the bank that's the number people are talking about. DealBreaker has been given strong reason to believe that the actual number number is far lower. We're also told that no investment bankers have been laid off.
The layoffs are said to be a continuation of similar layoffs in mortgage related units at other investment banks, according to a knowledgeable source. The gossip had been that the structured products group took the hit. But we spoke to someone at the structured products desk at Credit Suisse who says that his group is still hiring.
This summer’s credit crunch and subsequent drying up of the leveraged buyout market, have sparked persistent rumors and predictions of job losses on Wall Street. It's clear that there are lots of jitters all across Wall Street.
Credit Suisse could not immediately be reached for comment. We'll update this space as we get more information.
Update 6:30: We're sending a reporter over there to see what's up. Will scout nearby bars for CSers drowning their sorrows.
Update 7:00 We're out of here. Check comments below for additional rumor-mongering. We'll check back in later tonight when we've had a chance to check our email again.


Layoffs Watch '12: Credit Suisse

Cuts are going down at the House of Dougan today. From the front lines: "Layoffs started at Credit Suisse this morning, across the investment bank. All levels affected, including a good amount of senior guys." Apparently these reductions are part of a round cuts announced last year and were to be expected (though the "let's have a chat" from HR this morning may still have been a slight surprise for those being asked to take a seat).

Layoffs Watch '12: Credit Suisse

While Brady Dougan is keeping his job, the same cannot be said for 1/3 of European investment bankers. Credit Suisse is to cut senior staff in its European investment banking department by up to a third, three sources familiar with the matter said, as tighter regulation and weak markets hit the sector. "In the European investment banking business, they are going to get rid of 60 directors and managing directors," one source said on Monday. The investment banking department affected advises on mergers and acquisitions, stock market listings, financing and debt issues, as opposed to other areas of the broader investment bank that focus on securities trading. "It is about a third of the directors and 10-15 percent of the MDs," the first source said, referring to what are typically two most senior job ranks in the banking world. The layoffs would happen in July, this person said. The formal redundancy process can last several months. A second source said the cuts could end up affecting 20-30 percent of senior investment banking staff in Europe. Credit Suisse To Make Heavy Job Cuts In Europe [Reuters]