Swiss banking major Credit Suisse Group is likely to eliminate nearly one third of the directors and 10-15% of the MDs in its European investment banking department by the end of 2013 due to widening financial loses, increasing pressure from regulators and weakening market activities.
The decision follows Switzerland’s central bank recent call asking Credit Suisse to increase its capital base early than planned.
Although, job axing has been going on for a long time, the latest round of slashing is part of the 3,500 job cuts worldwide announced last year.
According to media resources, under the proposed curtail of jobs, nearly 60 directors and managing directors will lose their jobs, and the exercise is expected to begin in July this year and would run until December 2013.
The second largest bank of the Switzerland said last year that it expects to reduce $2.1bn in annual costs by the end of 2013 while the latest round of job cuts will result in savings of $832.75m.
The European investment-banking department focuses on activities such as advisory, mergers and acquisitions, as well as equity and debt-capital markets.
Another Swiss banking giant UBS AG said in August 2011 it would axe nearly 3,500 jobs as part of its already announced plans to cut costs of about $2bn per annum by the end of 2013.