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Credit Suisse announces 1,500 job cuts globally

The Swiss bank giant will cut another 1,500 jobs due tol third quarter results.

Credit suisse announces 1500 job cutsEnlarge
Credit Suisse CEO Brady Dougan announced today Credit Suisse plans to cut another 1,500 jobs. (FABRICE COFFRINI/AFP/Getty Images)

Swiss bank Credit Suisse announced plans to cut another 1,500 jobs in its offices around the globe, the BBC reports.

Credit Suisse, which employs 50,700 people globally, made the announcement only months after 2,000 jobs were cut in July. These cuts are in response to third quarter results below the company’s expectations. Net profits came in at 683m Swiss francs ($773 million), about 12 percent higher than the same period last year, BBC reports.

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“We believe subdued economic growth and the low interest rate environment and increased regulation that we are seeing may persist for an extended period,” said CEO Brady Dougan, Bloomberg reports “We may well continue to see continued low levels of client activity and a volatile trading environment.”

The Swiss bank will also reorganize its securities unit after the unit reported its first quarterly loss since 2008, Bloomberg reports. These added layoffs are also in response to current volatility in the markets “similar” to the 2008 crisis, said Dougan, Bloomberg reports.

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Switzerland’s second-largest bank after UBS, Credit Suisse also plans to shed two billion Swiss francs ($2.77 billion) in costs by the end of 2013, the Wall Street Journal reports. Credit Suisse’s stock fell 7.7 percent in afternoon trading in Europe.

Credit Suisse wasn’t the only international bank to announce job cuts today. Japanese investment bank Nomura said it would triple its cost-cutting target to $1.2 billion and Denmark’s Danske Bank said it would cut 2,000 jobs over the next three years, BBC reports.

http://www.globalpost.com/dispatch/news/regions/europe/111101/credit-suisse-announces-1500-job-cuts-globally