Credit Suisse to cut more jobs in U.S.
NEW YORK |
NEW YORK (Reuters) - Credit Suisse Group (CSGN.VX) is laying off another 138 employees in the New York region beginning next month, the third round of layoffs it has made this year.
The cuts, mentioned in a filing Wednesday with New York State's Department of Labor, follows an announcement by Switzerland's second-biggest bank the same day of a 15.3 billion Swiss franc ($15.63 billion) capital-raising plan that includes trimming 1 billion Swiss francs from its cost base.
Credit Suisse has not detailed job cuts worldwide, but the required notice in New York brings to 373 the number of layoffs in the region this year.
The filing did not disclose the level of seniority nor the business areas in which the layoffs will occur, but attributed the cause to "economic" reasons.
A bank spokesman in New York declined to comment.
The cuts are part of Credit Suisse's announcement last year that it would eliminate about 3,500 jobs worldwide and $2.1 billion of annual costs by the end of 2013 throughout its private banking, asset management and investment banking divisions. The bank did not say whether the new capital plan includes additional layoffs.
Credit Suisse employed about 11,700 people in the United States, Canada and other parts of the Americas as of December 31 2011.
It is not alone in trimming jobs and businesses in the face of higher regulatory capital requirements, depressed interest-related profits and reduced risk-taking.
Sources told Reuters on Thursday that Deutsche Bank (DBKGn.DE) will ax almost a tenth of its investment banking staff, or around 1,000 jobs after saying in April it saw no need for layoffs at the investment bank.
Bank of America Corp (BAC.N) on Wednesday announced a second leg of its campaign to cut 30,000 jobs by the end of 2014 en route to saving $5 billion a year. [ID:nL2E8II1XX1] Goldman Sachs Group (GS.N) also announced Wednesday additional job culling that it said will affect some high-ranking employees. [ID:nL6E8II14J]
Credit Suisse, which earlier this year closed its commercial mortgage-backed securities origination businesses, said it continues to accelerate plans to reduce its profile in capital-eroding businesses, including some of its asset-management operations.
(This story corrects sixth paragraph to show layoffs are part of previously announced plan)
(Reporting By Jed Horowitz, additional reporting by Katharina Bart; Editing by Leslie Gevirtz)
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