(Refiles to reach wider audience)
By Spencer Anderson
LONDON, Oct 30 (IFR) - Credit Suisse will cut 65 jobs across its fixed income business next week as part of its recently announced plans to reduce its presence in rates, according to two sources with knowledge of the plans.
The majority of the cuts are understood to fall in sales and trading, with about half of the job losses expected to be in the rates business, said one of the sources. Given the scale of the cuts, syndication and origination are also likely to be affected, he said.
A spokesperson for Credit Suisse declined to comment.
The Swiss bank said last week that it was restructuring its rates business following a poor quarter and in response to tough new rules on capital and leverage, but did not give any details on job cuts. It did say, however, that it is targeting SFr3.2bn (US$3.6bn) of cost savings by the end of the year and a total of SFr4.5bn by the end of 2015.
The announcement is expected to be made next week, possibly as early as November 5. Such cuts come almost exactly a year after Swiss rival UBS announced large job cuts across its own fixed income business - partly in response to Swiss rules on capital and leverage, which are much more onerous than internationally agreed levels.
“It’s not going to be to the same extent as UBS,” said the source. “But obviously the pressures from the Swiss regulator are the same.”
Credit Suisse’s investment bank saw its profits fall 52% year on year in the third quarter. (Reporting by Spencer Anderson, editing by Gareth Gore)