5 Dec 2008

Credit Suisse to cut 5,300 jobs

7:28 am on 5 December 2008

Credit Suisse is shedding another 5,300 jobs from its global workforce by the middle of the next year in an attempt to make savings of 2 billion Swiss francs.

Most of the jobs being lost are in investment banking. The Swiss banking giant has already shed 1800 jobs this year.

Credit Suisse has struggled since the onset of the financial crisis and has been forced to write off assets worth billions owing to bad loans.

It had a net loss of about 3 billion Swiss francs ($US2.5 billion) in the two months to the end of November.

Credit Suisse said the loss, primarily in investment banking, was due to adverse market conditions and risk reduction. In addition it will take a restructuring charge of 900 million Swiss francs.

"Investment banking had a significant pretax loss, reflecting the challenging conditions in the financial markets in the quarter and the costs associated with risk reduction," Credit Suisse said in a statement.

The bank is shedding 11% of its workforce as it strives to make savings of 2 billion Swiss francs.

So far, Credit Swiss has managed to weather the global financial crisis without state aid.

The global financial sector has seen 150,000 jobs cut since September.