Credit Suisse First Boston to shed 2,000 jobs
Credit Suisse First Boston is to cut 2,000 jobs after its parent Credit Suisse Group announced a third-quarter loss of around SFr300 million ($186 million) on Tuesday.
The Group’s losses were attributed to an operating loss at CSFB, lower insurance profits, a SFr400 million writedown on its stake in Swiss Life and some SFr200 million in provisions due to its credit exposure to the Swissair Group.
The job cuts at CSFB are part of a drive to make savings of SFr1 billion by the end of next year. In July, Credit Suisse named industry veteran John Mack as the new head of CSFB with a brief to tighten controls at the unit.
CSFB is to report a third quarter operating loss of around $120 million, reflecting tough market conditions and the impact of the attacks on the United States.
“The steps we are taking today will more closely align the size of our business with changing market conditions and bring our cost structure in line with that of our major competitors,” said Mack in a statement.
“Tough choices”
“These steps require tough choices, which are all the more difficult in the face of the recent tragedy that has profoundly affected our industry,” he added. “But they are critical if CSFB is to continue to compete effectively and build its business.”
Credit Suisse said it expected transaction volume to remain low and market conditions to stay difficult in the fourth quarter.
Shares in the Credit Suisse Group opened sharply down but recovered by the close to trade 2.5 per cent lower at SFr53.10.
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