Credit Suisse Group AG could cut “hundreds” of jobs as the Swiss lender mulls different savings plans that would allow it to reach its profit targets, according to SonntagsZeitung, which didn’t say where it obtained the information.
Chief Executive Officer Thomas Gottstein is mulling thinning out the Zurich-based bank’s domestic branch network after the novel coronavirus crisis gave its online operations a boost, and could reverse a decision by his predecessor, Tidjane Thiam, to split the investment bank into a Global Markets division and an Investment Banking & Capital Markets one, the newspaper said. Merging the investment bank’s activities would make it easier to cut jobs, SonntagsZeitung said.
The CEO also is examining the possibility of merging the areas of risk and compliance, which grew after the 2008 financial crisis. No decision has yet been made on the savings options under consideration, SonntagsZeitung said.
“On an ongoing basis, we consider a broad range of options to identify ways to further improve how we serve our clients,” the bank said in an e-mailed statement to Bloomberg. “We are in a constant dialog on these topics with our investors.”
Credit Suisse shares are down 25% this year, lagging the 8.9% decline of domestic rival UBS Group AG in the period.
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