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Credit Suisse to slash 5,300 jobs

Source: PTI
December 04, 2008 18:02 IST
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Swiss banking major Credit Suisse said on Thursday that it will cut 5,300 jobs, accounting for 11 per cent of its global workforce, by the first half of next year.

Battered by the financial turmoil, the company has incurred a whopping loss of 3 billion Swiss francs (about $2.5 billion) as of November-end in the fourth quarter.

This is in addition to earlier writedowns worth billions of dollars. Credit Sussie already slashed 1,800 jobs this year.

"The company will reduce its headcount by 5,300, an 11 per cent reduction of the bank's workforce. These reductions will be primarily in investment banking and in related support areas, the vast majority of which will have taken place by the end of the first half of 2009," Credit Suisse said in a statement.

Credit Suisse said that job cuts, along with additional reductions in compensation and non-compensation expenses, would bring down costs by about two billion Swiss francs. The amount represents 9 per cent of the bank's reported nine-month annualised 2008 cost base.

"Costs associated with the strategic measures will amount to approximately CHF 900 million and the majority will be taken in the fourth quarter. These costs are not reflected in the estimated quarter-to-date result as of end-November," the statement said.

Noting that it would continue to invest in its private banking buinsess globally, the firm said it has made a net addition of 370 relationship managers in wealth management, as of November-end, exceeding its target of 330 for 2008.

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