Venditti highlighted another conundrum: 'Should restructuring costs, including from job cuts, run into the billions, the bank may also need to raise more capital.'Īnalysts at Deutsche Bank estimate that it may need to bolster capital by 4 billion Swiss francs to shore up its buffers and fund the revamp. 'You can end up in a vicious circle, where jobs are cut, service declines and customers leave.' But it's not a strategy,' said Andreas Venditti, an analyst with Vontobel. 'Cutting cost is the easiest immediate step it can take. The Swiss lender is under increasing pressure to turn around the business and improve its financial resilience. His strategic review, the second in less than a year, will evaluate options for the bank, while reaffirming its commitment to serving wealthy customers. Koerner, promoted to CEO just over a month ago, has been given the task of paring back investment banking and cutting more than $1 billion in costs to help the bank recover from a string of setbacks and scandals. Swiss newspaper Blick earlier reported that more than 3,000 jobs would be shed.Ĭredit Suisse has already said it will cut costs below 15.5 billion Swiss francs ($15.8 billion) in the medium term, versus an annualised 16.8 billion francs this year. The discussions about job cuts are ongoing and the number of reductions could still change, the source said. The Zurich-based bank has dismissed speculation that it could be bought or broken up. The bank declined to comment beyond repeating that it would give an update on its strategy review with its third-quarter earnings, saying that any reporting on outcomes was speculative.Ĭredit Suisse has dubbed 2022 a 'transition' year with a change of guard, restructuring to curtail risk-taking in investment banking and bulking up wealth management. The scale of the potential job cuts underlines the challenge facing Credit Suisse and new chief executive Ulrich Koerner, who is seeking to put the bank back on an even keel after a string of scandals. ZURICH, Sept 2 (Reuters) - Credit Suisse (CSGN.S) is considering cutting around 5,000 jobs, about one position in 10, as part of a cost reduction drive at Switzerland's second-biggest bank, a source with direct knowledge of the matter told Reuters.

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