Credit Suisse announced this morning that it will be cutting 500 jobs in investment banking and “administrative support” divisions. Spokesman Bruce Corwin claimed the layoffs are due to shrinking client demand, though one might note the “coincidence” between the start of the tortuously long summer lines at the Shake Shack and a sudden reduction in headcount. Luckily, for any interns tasked with spending three quarters of his/her June/July/August waiting to order someone else’s Shroom Burger, we’re told that the cuts are worse than what’s being reported. Supposedly over half the real estate finance group “will be gone before the end of the day,” and there will be “severe carnage” across the entire firm. Severance packages are said to include two months pay, period.
On the bright side, let’s give it up for whoever’s idea it was to break the layoffs news (and the inevitability forthcoming news of blown earnings) on the same day rival Swiss bank UBS came out with a fifty page report detailing in easy bullet-proof form* how it went about systematically destroying value over the last year or so. That was smart. Very smart.
Credit Suisse Says It's Cutting 500 Jobs as Client Demand Wanes [Bloomberg]
*Helpful for anyone interested in following suit but unsure where to start.
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]
Layoffs Watch: Credit Suisse
The House Of Dougan has apparently said Do svidaniya to a handful of comrades.
Layoffs Watch '12: Credit Suisse
Cuts were said to have gone down at the House of Dougan this week. "Layoffs at Credit Suisse this week, mostly Wednesday and Thursday. ASO / VP level in IBD groups in New York (TMT, Energy, Industrials, Sponsors)."
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).