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Credit Suisse reportedly slashing 5,000 jobs globally

credit suisse
The company has faced a string of scandals and mounting legal costs. It is currently undergoing what it calls a transition phase with a new CEO. © Keystone / Melanie Duchene

Embattled Swiss bank Credit Suisse is planning to cut around 10% of its workforce as part of a major cost cutting drive, according to several media reports.

Reuters reported on Thursday that someone with direct knowledge of the matter indicated that 5,000 positions are expected to be slashed, which is about one in ten positions at the second largest bank in Switzerland.  

Credit Suisse declined to respond to Reuters’ requests for confirmation, repeating that it would give an update on its strategy review with its third-quarter earnings next month. Any reporting on outcomes of this review was speculative at this time, the bank added.

The scale of the potential job cuts comes in the wake of a string of scandals and mounting legal fees. In June, Credit Suisse was convicted of failing to prevent money laundering by a Bulgarian cocaine trafficking gang in Switzerland’s first criminal trial of one of its major banks. The bank is appealing the verdict.

The bank is also still dealing with the impact of losses associated with the collapsed Archegos hedge fund and Greensill financial group.

The company is currently undergoing what it refers to as a “transition” year with a new CEO and several measures to curtail risk-taking in investment banking and bulk up wealth management.

The discussions about job cuts are ongoing and the number of reductions could still change, Reuters’ source said. Swiss newspaper Blick earlier reportedExternal link that more than 3,000 jobs would be shed, a majority of which would come from the Zurich headquarters.

Credit Suisse has already said it aims to cut costs below CHF15.5 billion ($15.8 billion) in the medium term. So far, it has not outlined job cuts.

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