Credit Suisse Group AG is reducing its workforce by 5% in the fourth quarter and plans to reduce the number of employees even more by 2025, the company said on Thursday.
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The reduction of 5% in the fourth quarter amounts to 2,700 full-time employees, according to a press release from Credit Suisse. The bank said it expects to further cut its total workforce to about 43,000 by the end of 2025.
Credit Suisse said it had about 52,000 full-time employees at the end of the third quarter, for which the bank reported earnings on Thursday.
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The plans to reduce headcount came as Credit Suisse released details of its “transformation plan”[ads1];.
The bank will spin off its capital markets and advisory activities to CS First Boston and “allocate almost 80% of the capital to Wealth Management, Swiss Bank, Asset Management and Markets”, it says, among other things. The Saudi National Bank has “committed to invest” up to 1.5 billion Swiss francs in Credit Suisse, according to the Swiss bank.
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The plan aims to “create a stronger, more robust and more efficient bank with a solid foundation, focused on our customers and their needs,” Chairman Axel Lehmann said in a statement, adding that Credit Suisse will “remain absolutely focused on to drive our culture. transformation, while working to further improve our risk management and control processes across the entire bank.”
For the third quarter, the company reported 3.8 billion Swiss francs in net income, which rose 4% quarter-over-quarter but fell 30% year-over-year. It had a net loss of 4.03 billion Swiss francs.
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