Credit Suisse to Cut 9,000 Jobs in Drastic Restructuring to Curb Losses

Banking giant Credit Suisse is embarking on a significant restructuring effort to address mounting losses and allay investor concerns, leading to a substantial reduction in its workforce. The bank announced it would take drastic measures, as Credit Suisse shares have plummeted following the announcement of its strategic overhaul.

Via its proposed strategic shift, Credit Suisse will “radically restructure” to cut its exposure to risk-weighted assets and leverage exposure. This ambitious plan involves a massive cost-cutting initiative. The bank intends to chop its cost base significantly through job reductions.

It will cut 2,700 jobs, or 5% of its workforce by the end of this year, and ultimately reduce its workforce by roughly 9,000 to about 43,000 by the end of 2025. This move represents a significant downsizing of the organization and a reflection of the challenges it faces.

Credit Suisse is undergoing a sweeping overhaul and will seek approval from shareholders later Wednesday for a capital raise of about 4 billion francs. As part of a broader plan to regain stability and profitability, the bank is streamlining operations and refocusing its business strategy.

The core of the restructuring involves a shift towards serving its wealthier clientele and reducing exposure to riskier investments. This strategic pivot comes as the bank seeks to reassure investors and rebuild confidence in its future. The impact of these job cuts will be felt globally as Credit Suisse works to navigate this challenging period.