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Layoffs Watch '15: Credit Suisse Wants You! (To Help It Cut Costs By 3.5 Billion Francs)

This is not so much a request as a requirement you're unlikely to get around, unless anyone is considering chaining themselves to their desks.
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Back in March, when it was announced that he'd be taking over Brady Dougan's job in June, analysts predicted that new Credit Suisse CEO Tidjane Thiam would make "significant" cuts to the investment banking division. "I’d be surprised now if they didn’t put the knife into the bone," said Al Alevizakos, scaring young children and investment bankers everywhere. Today, members of Team IBD can take comfort in knowing that while, yeah, they probably will see their jobs eliminated, they're not the only ones being asked to make sacrifices for the Swiss bank.

Credit Suisse Group AG’s new chief executive stamped his mark on the bank Wednesday, unveiling plans to raise $6.3 billion in fresh capital, scale back its investment bank, cut jobs and retrench from the U.S. and London...The capital raise should be augmented by some 3.5 billion francs in cost savings by the end of 2018, the CEO said. He said thousands of back office jobs currently based in London may be moved to cheaper locations such as India, a process that could contribute to more than $200 million in annual savings. In addition, Credit Suisse plans to pull back from its wealth management business in the U.S., and to cut jobs in Switzerland, which should also result in savings, he said. About 1,600 jobs should be eliminated in Switzerland, and about 2,000 jobs “don’t need to be in London” anymore, Mr. Thiam said.

And while the peanut gallery is pleased to see Credit Suisse is firing investment bankers, it wishes Thiam would fire a whole lot more of 'em, like that other Swiss bank.

Some analysts noted that Credit Suisse’s planned investment banking cuts, which will reduce the amount of risk-weighted assets in the unit by about a fifth, will disappoint those expecting the same dramatic restructuring completed at rival UBS Group AG. UBS has won plaudits for slashing its investment bank, as well as investor confidence. Some analysts had predicted that Credit Suisse would essentially follow the UBS playbook. Vontobel analyst Andreas Venditti, commenting on the Credit Suisse cuts, said: “This is far away from what UBS did.”

Why can't you be more like UBS, Credit Suisse?Next time, try harder.

Credit Suisse to Launch $6.3 Billion Capital Increase [WSJ]
Credit Suisse Drops as Investors Question Strategy's Targets [Bloomberg]

Earlier: Credit Suisse’s New CEO Lets Investment Bank Down Easy; Layoffs Watch ’15: Credit Suisse, Maybe?


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