Just days after it was reported that Credit Suisse was handing out hundreds of millions to retain talent, the firm is now reportedly mulling mass layoffs, with “thousands of roles globally” at risk of being cut.
The bank is looking to cut its overall cost base by $1 billion, Bloomberg reported this week. This could include an “aggressive plan” to reduce its headcount of more than 51,000 workers.
The bank is “examining inefficiencies in the bank’s middle and back office in addition to the efforts to reshape its investment bank,” the report says, and is expected to finalize plans for the cuts over the next two quarters.
Several thousand roles could be cut over a number of years, according to people familiar with the matter.
The bank told Bloomberg: “We have said we will update on progress on our comprehensive strategy review when we announce our third quarter earnings; any reporting on potential outcomes before then is entirely speculative.”
It is expected to be the biggest round of cuts since former chief executive officer Tidjane Thiam cut about 6,000 positions in 2016 after the firm posted unexpected losses on some trading positions.
Ulrich Koerner was appointed to lead the bank last week. He formerly was UBS’s chief operating officer during period where the bank slashed 15,000 workers after the 2008 financial crisis, so it’s safe to say he has experience in making such drastic cuts.
This news comes just days after it was reported that the firm had handed out more than $300 million in a single month to retain some of its top bankers.