Credit Suisse to cut another 2,000 jobs

Swiss banking giant Credit Suisse has announced that 2,000 jobs will go at its global markets business.

 

The latest cuts are in addition to the 4,000 job cuts announced last month and are part of the bank's efforts to reduce annual costs by 800m Swiss francs a year (£580m; $820m).

The company blamed a "high and inflexible cost base" and "volatile market conditions".

The global markets business trades bonds and other financial products.

'Disappointing' results

Tidjane Thiam took over as chief executive of Credit Suisse last July, having spent six years leading the UK-based insurer Prudential.

In a statement accompanying today's announcement, he described the performance of the global markets business as "disappointing", blaming the company's exposure to financial products that were difficult to trade in "challenging" market conditions.

"In this context, we have taken immediate action to reduce outsized positions in activities not consistent with our new strategy and systematically reduced our exposures," he said. 

The bank is leaving some business areas altogether, including distressed credit products.

Credit Suisse is investing in its equities (shares) business which it described as "a core area of focus for the bank".

Credit Suisse expects to report a loss in the first quarter of 2016, due to a charge of $346m to cover the costs of the reorganisation.

In 2015, the bank made a pre-tax loss of 2.4bn Swiss francs ($2.4bn; £1.6bn) - its first annual loss since 2008.