Credit Suisse Group AG is ramping up its cost-cutting efforts on the home front in a bid to help spur its profitability. This includes the elimination of roughly 900 jobs as the lender sets up for a partial sale of its Swiss division.
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European lenders have faced a tough year in 2016, with the deepest cuts being felt in London. Leading banks such as Deutsche Bank, Standard Chartered, and Barclays have each embarked on ambitious measures to help kindle profits and sagging revenues, which to varying degrees has ushered in the outflow of thousands of jobs.
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In terms of Credit Suisse, the bank will be cutting around 900 positions in Switzerland in 2017, part of its latest efforts to jumpstart its profitability, according to a recent Bloomberg report. The total amount of cuts could ultimately reach 1,600 jobs by 2018. To date, over 6,050 jobs have been axed at Credit Suisse in 2016, though it is unclear what divisions or units faced the largest losses.
Overwhelmingly, back office, IT, and bank branch jobs have been the most susceptible to losses, as the rising cost of labor and a push towards digitalization have collectively made these roles more expendable.
The latest job cuts are simply a continuation of Credit Suisse’s strategy. The Swiss lender laid out plans earlier this year to restructure its business in order to return to profitability after losing close to $3 billion and revealed that it was seeking to increase its cost cutting efforts by around $820 million.
Credit Suisse also revealed that the consolidation process of its Global Markets division would include a consolidation of the FX Cash and FX Options businesses into the STS operations of Credit Suisse, which are part of the Swiss Universal Bank. Earlier this month, the lender announced more than CHF1 billion ($991 million) in extra cost cuts, as Chief Executive Tidjane Thiam looks to compensate for the on-going challenging conditions faced by the bank.