Credit Suisse To Axe 300 Jobs
It emerged last week that the Credit Suisse Group is to cut 300 jobs at its
base in Zurich next year in order to facilitate its stated aim of returning
to profit in 2003. Reporting on Friday, Swissinfo.org revealed that the move, set to save around
SFr140 million will involve the merging of some investment banking activities
into its financial services division. 'CS said Zurich-based securities and treasury operations at its investment
bank, Credit Suisse First Boston would be moved into its Financial Services
division, and the job cuts would be spread across both,' the news service explained. Credit Suisse's problems really began, according to experts, when - under former
CEO, Lukas Muhlemann - the company embarked on an aggressive expansion strategy
into investment banking and insurance, which left the group highly exposed when
the current global economic slump began. Joint chief executives, John Mack and Oswald Grubel are now left with the unenviable
task of trying to cut costs and restore earning power after the Credit Suisse
Group reported a SFr2.1 billion loss in the third quarter largely, according
to Swissinfo 'on the back of losses at CSFB and CS's insurance subsidiary, Winterthur'. It is not known whether any further job losses are anticipated over the coming
year. .
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