Credit Suisse to slash 10% of investment bankers

Credit Suisse is planning to cut more than 10% of European investment bankers this year, following the release of hundreds of staff in London and Zurich last month, according to sources familiar with the situation. The Swiss lender announced in October that it planned to cut as many as 9,000 roles globally over the next three years from its 52,000 workforce. However, these plans have accelerated in recent weeks as the bank prepares to announce its second consecutive annual loss next month.

Analysts predict that there will be a wave of heavy job cuts across investment banks globally, following on the heels of Goldman Sachs, which began a plan to fire more than 3,000 staff this week. Investment banking revenues were hit severely last year and lenders are under pressure to cut costs, having bulked up on hiring over the past two years.

Credit Suisse is under more pressure than its peers, given that it suffered huge client withdrawals in October following social media rumours about its financial health and has racked up a succession of quarterly losses over the past three years. The initial wave of 2,700 global redundancies in December included 540 job cuts in Switzerland and as many as 200 in London. Credit Suisse employs more than 5,000 people in London and 16,000 in Switzerland.

Consultations over the next round of redundancies began before Christmas, with more than 10% of investment banking jobs in Europe under discussion, according to sources familiar with the talks. A final decision is expected next month. The lender employs around 17,000 investment bankers globally, with its main centers in New York and London.

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