Credit Suisse Group AG is considering hundreds of job cuts as part of ongoing efforts to drive down costs, according to people with knowledge of the matter.
The dismissals could start as soon as this year and help the bank achieve its 2019 cost targets, the people said, asking not to be identified discussing private information. The Zurich-based bank’s International Wealth Management business and Swiss Universal Bank may be among the businesses affected, they said. Credit Suisse declined to comment.
Chief Executive Officer Tidjane Thiam is preparing to outline his strategic vision for the bank in 2019 and beyond as the three-year restructuring formally concludes next month. Since taking over, he’s shifted resources to focus on wealth management and emerging markets while paring back trading. He’s also tapped shareholders for billions of francs in fresh capital.
While profitability has improved the trading unit remains a headache for Thiam after it posted a surprise third-quarter loss. The share price has fallen more than 40 percent under Thiam’s tenure, in part reflecting the two capital increases. At the investor day next month he’ll have to allay concerns about the share price and explain how he plans to accelerate revenue growth after taking out 4 billion francs ($4 billion) of costs since the restructuring began in 2015.
Thiam said this month that he’s not planning further cuts in the trading unit, while pointing out that wealth management is making money for the group. The bank is targeting a cost base of between 16.5 billion francs and 17 billion francs next year. That’s down from about 17.9 billion in 2017.
This article was provided by Bloomberg News.