Credit Suisse prepares for worsening European economy with more job cuts: report

Credit Suisse is planning another round of job cuts, as Switzerland's second-largest bank after UBS, prepares for a potential worsening of the European economy, The New York Times today reported, citing a person with direct knowledge of the matter.

The Zurich-based bank is planning to eliminate as much as 30 per cent of its workforce, mainly in Europe and the new layoffs could take place over the next 12 months, said the paper.

In July 2011, the bank had said that it would cut about 2,000 jobs globally or 5 per cent of its 50,700 workforce by the end of 2012, and again in November announced that it would eliminate 1,500 positions in its investment bank, including staff in its advisory business, after the unit reported disappointing third quarter results.

It already laid off 126 employees in the New York area in the beginning of August 2011, and had eliminated 2,000 jobs by the end of March this year, including head of the Indian wealth management business and 13 others of the nearly 40 employees in the team.

The present round of job cuts could come from its European investment banking division, advisory and capital markets business.

The new round of layoffs in the bank's European investment banking unit comes after Switzerland's central bank said Credit Suisse required to increase its capital this year in order to prepare for a potential worsening of the European debt crisis, said the paper.