Credit Suisse cuts 5,300 jobs

Losses and Lawsuits

ZURICH - Swiss bank Credit Suisse is planning to purge 5,300 jobs, in the wake of a Sfr3 billion ($2.5 billion) new loss across the firm during October and November 2008. Two thirds of job losses are expected to fall within its investment banking arm - responsible for the bulk of the firm's losses. The job cuts represent 11% of the bank's total workforce, alongside a reduction of 1,400 external contractors.

The bank has said the cuts represent an overhaul of its investment banking unit, with a reduced focus on complex credit and structured product origination, in addition to exiting some proprietary and principle trading activities. Chief executive Brady Dougan said the measures "will reposition the business in line with a fundamentally changed macroeconomic environment". The bank aims to save Sfr2 billion, equating to 9% of its annual cost base, in the first three quarters of 2009. As part of the bank's cost-cutting drive, Dougan and Paul Calello, chief executive of the investment banking arm, have committed to forgoing bonuses for 2009.