Credit Suisse latest to cut jobs

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Credit Suisse latest to cut jobs

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Swiss bank Credit Suisse is reducing its workforce by around four percent – that is 2,000 people.

Switzerland’s second-biggest bank announced that at the same time that it posted second-quarter results which were pulled down by weak trading activity and the strong Swiss franc.

It was the latest bank to make job cuts following on from Standard Chartered, Lloyds, Goldman Sachs and UBS, with HSBC expected to follow suit.

Credit Suisse said second-quarter net profit fell to 768 million francs, below analysts’ average forecast for one billion. Net new assets in private banking were 11.5 billion, also missing a forecast 14.2 billion.

“We have to recognise the likelihood that the current headwinds in the economic and market environment may be more persistent than we would have hoped,” said Chief Executive Brady Dougan and Chairman Urs Rohner.

“We expect interest rates to remain low for an extended period of time and the strong Swiss franc to continue to have an impact on our results. We may also continue to see lower levels of client activity and a volatile trading environment.”

Credit Suisse Chief Financial Officer David Mathers said the cost cuts, aimed at shaving 1 billion Swiss francs from the expense run-rate during 2012, would hit all divisions but particularly the investment bank, and in all regions.

He said 500 of the job cuts would come in Switzerland, where the bank has a high cost base that is hurting results as the Swiss franc soars to record highs.