Credit Suisse, Switzerland's second largest bank yesterday said that it would cut about 1,500 jobs in its investment bank, including staff in its advisory business, after the unit reported disappointing third quarter results.
The job losses come on top of 2,000 cuts announced by the Zurich-based bank in July.
The cuts, which amount to 7 per cent of its 50,700 global workforce, would bring annual cost savings of $2.27 billion by 2013.
Like other global financial institutions, Credit Suisse had gone on a hiring spree after the global financial crisis in order to garner market share on the hired aggressively in the aftermath of the financial crisis on the mistaken optimism that Europe and the economies of the US and Europe will bounce back leading to a recovery for banks.
Post third quarter results, banks all around the world have resorted to reducing headcount due to stricter regulations and weak third fiscal quarter earnings especially in the investment banking sector.
Its rival, UBS has said that it will announce its own restructuring plans on 17 November after it was hit in September when a rogue trader made the bank lose $2 billion because of unauthorised trades. (See: UBS in trouble again after rogue trader held for $2 bn fraud)