Credit Suisse Group AG (NYE:CS) is currently in talks of potentially cutting back 5,000 jobs in the investment banking sector during their first-quarter results which will take place at the end of this month. This report comes from Der Sonntag newspaper.
Last year, the bank had 20,900 investment bankers, that was 200 more than what they started the year with. Apparently, the financial institution was completely oversized as one senior management elaborated. The company’s spokeswoman has yet to make an official statement about the news.
Credit Suisse Group AG (NYE:CS) is a large bank based out of Zurich, Switzerland. They have over 250 bank branches in their home country and many more operations in over fifty countries around the world. The bank first got a start in 1856 when it was first opened by Alfred Escher as Schweizerische Kreditanstalt.
In the early 1940s, they opened a branch in New York City- their first location outside their country. Since then, they opened many more locations including the co-operation of The First Boston Corporation which they eventually acquired in 1990.
Credit Suisse also acquired the following: Buckmaster & Moore stock brokers in 1987; Bank Leu in 1990; and Donaldson, Lufkin, & Jenrette in 2000.
Corinne Gretler from Bloomberg Businessweek reports that last year, the bank’s CEO Brady Dougan pay was cut 55% to just $6.3 million or 5.82 million in francs. Robert Shafir, asset-management lead, received the most pay with 8.5 million francs.
Everywhere you look, it seems that every company is experiencing some type of downfall and Credit Suisse Group AG (NYE:CS) is no exception. Whether they actually cut back 5,000 jobs is something that remains to be seen, perhaps they will be able to salvage some jobs beforehand and cut back that number to something significantly smaller. Last year, the bank officially announced they would cut back 2,000 jobs in July and 1,500 more in November which resulted in a total of 3,500 job cuts.