Credit Suisse to cut workforce by 4%

28 July 2011

Credit Suisse Group has announced it is to cut around 2,000 jobs in an effort to reduce its outgoings following weak second-quarter net profits.

The Zurich-based bank - which was founded in 1856 - witnessed these levels drop by more than half over the second three-month period of the year, with a trading slowdown and a hammering by the strong Swiss franc cited as reasons for the fall.

It means around four per cent of the lender's workforce look set to be released as part of a cost-cutting initiative that will result in restructuring charges of up to 450 million Swiss francs ($562.5 million) this year.

In a letter to shareholders, chairman Urs Rohner and chief executive Brady Dougan said: "We expect interest rates to remain low for an extended period of time and the strong Swiss franc to continue to have an impact on our results."

The duo added a volatile trading environment and reduced levels of client activity are also likely for the foreseeable future.

By Claire Archer

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