Credit Suisse job cutting: Thousands of employees may be laid off by Suisse, know the reason
Credit Suisse Group AG could cut thousands of jobs globally. The Swiss have already discussed job cuts. According to Bloomberg News, this information was given by quoting people familiar with the matter.
The news comes as Fitch Ratings joined Moody’s Investors Service to downgrade Credit Suisse from a negative outlook for the bank, which downgraded Switzerland’s second-largest bank earlier this month.
Bloomberg reported that the Swiss bank could finalize plans in the next few months and is investigating inefficiencies in its middle and back offices, in addition to efforts to reshape its investment bank. When we announce our third quarter earnings, we will provide an update on progress on our comprehensive strategy review, a Credit Suisse spokesperson said. No reporting of potential results before this will be completely accurate.
Fitch said it has downgraded Credit Suisse Group AG’s long-term issuer default rating from ‘BBB’ to ‘BBB’ (bond credit rating). The rating agency said a further restructuring plan after the strategic review would jeopardize the physical performance, especially if the material cost required for the restructuring is in view of the bank’s weak earnings.
Credit Suisse reported a loss of 1.59 billion Swiss francs ($1.65 billion) in the second quarter at the end of July. The bank had earlier said that its objective is to promote cost savings. The bank is tightening controls after suffering billions in losses through risk-management and compliance defaults.