Credit Suisse Plans Laying Off 9000 Personnel Post $4.09B Loss

• Credit Suisse reported a net loss of 4.034 billion Swiss francs [$4.09 billion] for Q3.
• By 2025, the bank hopes to have reduced its cost base by 15 percent.

Credit Suisse, a Swiss investment bank and provider of financial services, made headlines at the start of the month due to a worsening fundamental picture and a subsequent widening of the credit default swap spread.

Its impact may be seen in the company’s quarterly results, which were released today. As a result, Credit Suisse reported a net loss of 4.034 billion Swiss francs [$4.09 billion] for the third quarter, which was much higher than the 567.93 million Swiss francs [$56.9 million] that had been predicted by analysts. Also, the number was much lower than the 434-million-Swiss-franc profit recorded in the same period a year ago.

Strategic Planning

In an effort to reduce losses, the bank has introduced a number of new policies. Credit Suisse plans to “radically restructure” in order to reduce its exposure to risk-weighted assets and leverage via this planned strategic change. By 2025, the bank hopes to have reduced its cost base by 15 percent, or 2.5 billion Swiss francs.

Over 9000 positions will be eliminated as part of the company’s restructuring effort. As of the end of September, Credit Suisse had 52,000 employees. By the end of 2025, they are projected to have just around 43,000. A decrease in personnel was reflected in the same.

As previously mentioned, the bank plans to issue additional shares to qualified investors in order to raise capital in the amount of 4 billion Swiss francs; among these investors is Saudi National Bank, which has pledged to contribute up to 1.5 billion Swiss francs. If it did, it would get a 9.9 percent ownership in the company.

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