Credit Suisse to accelerate staff cuts
2022.12.02 04:06
Credit Suisse to accelerate staff cuts
Budrigannews.com – On Friday, the executive director of Credit Suisse, Axel Lehrmann, said that Credit Suisse was accelerating the cost reduction that had been reported just a couple of weeks earlier because the influx of buyers and the cessation of movement negatively affect the income of Swiss banks.
Lehmann said on Bloomberg: “We are really increasing execution,” and the next morning after the Reuters sources reported, the troubled bank is looking for ways to accelerate savings. “In October, Credit Suisse announced that its main cost by 2025 will be about 14.5 billion francs or $ 2.67 billion.”
“We are confident that by the end of the year we will exceed $1.2 billion. Therefore, we are trying to load work from the front, not from the back,” he said. According to the sources, who wished to remain anonymous due to the fact that the discussions are private, the savings may lead to more job losses than previously announced in the first wave of declines, including its core expansion business.
Two sources reported that Credit Suise is cutting about 5 employees of the private bank of Hong Kong, an Asian financial Center, paying special attention to middle and junior bankers, which is a deeper reduction than previously mentioned. Credit Suisse did not discuss salary cuts at Hong Kong’s private banking service, which is a private bank.
The Bank told Reuters on Thursday: “As previously reported, the Bank has already made progress in such measures aimed at reducing costs, using a clear roadmap of execution.” As the investment bank downsizes its scandal-hit businesses to focus on wellbeing and asset management, it announced the liquidation of 2,700 employees in the fourth quarter.
However, during the six weeks that have passed since November 11, customers received 6 assets of the Bank under management, which caused the Bank’s liquidity to fall below the regulatory requirement in a number of divisions. Capital outflow also affects income.
On Thursday, the chairman of the credit company, Axel Lenan, said at the Financial Times conference that part of the outflow of customers had stopped, and that only a small number of customers had left the company completely.
On Thursday, the prices of Credit Suisse shares fell to a new record low as they approached the price of the 2.24 billion francs rights issue proposals needed by the company in order to stabilize its financial performance.
Thanks to the promise to improve capital management in the world, the last stage of the decline in private banking services highlights the difficulties that will arise during the promotion of rich people into banking.
According to two sources, individuals who are associated with the business in asset management in China have primarily suffered from the fact that Hong Kong’s private banking sector is shrinking.
Singapore is the second well—being center of the credit union in Asia, located on the territory of Singapore.
In October, the bank announced that it would lay off 9 thousand employees out of 52 thousand.
