Credit Suisse says it's eliminating 5,300 investment banking jobs, or about 11 percent of the firm's worldwide headcount, by the middle of next year. However, the bank continues to expand in global private banking and in its Swiss businesses.
"The strategic measures reflect, among other factors, the impact of weaker macroeconomic conditions, continued market volatility and fundamental shifts in client demand away from more complex products towards the greater use of exchange-based and flow trading," the bank says. "The Investment Banking division will also continue to reduce its origination capacity in complex credit and structured product businesses and cut risk capital usage, including exiting certain proprietary and principal trading operations."
The steps are expected to reduce costs by 2 billion Swiss francs ($1.7 billion at Thursday's exchange rate), or 9 percent.
At the same time, Chief Executive Brady W. Dougan says the bank will "judiciously invest" in the growth of private banking globally and in Swiss businesses. Credit Suisse has a net 370 relationship managers in wealth management since the start of 2008, exceeding its annual target of 330 additions.