Investment bankers facing job cuts

10 July 2012

A wave of job cuts could be set to hit the investment banking sector as the eurozone's debt crisis rumbles on.

Credit Suisse Group and UBS, which are Switzerland's two biggest lenders, are facing pressure to improve their efficiency ahead of the introduction of tougher capital and liquidity rules, Bloomberg reports.

It would represent the second batch of redundancies in less than 12 months and comes as fees from mergers and securities underwriting hit a nine-year low.

Edward Cumming-Bruce, a partner at London-based advisory firm Gleacher Shacklock LLP, noted the pressure on lenders to cut costs and improve balance sheets is remorseless.

"Bankers are really gloomy and a lot of people are worried about their jobs," he added.

Revenue per employee last year at Credit Suisse and UBS was $622,654 and $612,707 respectively, which is around 50 per cent lower than 2006's figures, as the banks struggle to make as much money as they used to.

By Tony Aynsley

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