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Credit Suisse to Extend Global Job Cuts to Wealth Next Week

The bank said it started 2,700 job cuts in the fourth quarter and is aiming to reduce about 9,000 positions by 2025.

(Bloomberg) -- Credit Suisse Group AG is planning a fresh round of job cuts at the global wealth management business starting next week, adding to dismissals that already started at the investment bank, according to people familiar with the matter.

The Swiss lender is preparing to notify affected personnel, mostly support staff and investment advisors at this stage, as soon as Monday, the people said, asking not to be identified discussing confidential information. In Asia Pacific, some wealth teams could see cuts of about 10% of headcount, two people said. 

The Swiss firm last week announced a sweeping overhaul, seeking to shave 2.5 billion francs ($2.5 billion) off its cost base. As part of the plans, the bank said it started 2,700 job cuts in the fourth quarter and is aiming to reduce about 9,000 positions by 2025.

A Credit Suisse spokesperson reiterated that a plan to cut 2,700 roles is underway and declined to comment further.

Dismissals in markets and investment banking will continue next week, according to the people. As many as 900 client-facing jobs at the unit could be affected globally, one person said. 

The troubled lender has emphasized its focus on banking the wealthy, with chairman Axel Lehmann stressing in a Bloomberg interview earlier this week that going forward, Credit Suisse is “really a wealth management-centric franchise, centered around entrepreneurs, wealthy clients.” 

Even so, the cuts will not leave the division unscathed, though relationships managers are likely to be less affected, one person familiar with the matter said. Credit Suisse has already seen a slew of departures from its wealth division, including a top executive. 

At the investment bank, the restructuring will see Credit Suisse spin out its capital markets, advisory, and leveraged finance teams into a revived US-focused First Boston entity, while cutting back some riskier businesses. 

Investment banking chief David Miller indicated in a memo to staff last week that CS First Boston won’t be spared from the cost cuts at its corporate parent as starting the new business will entail “difficult choices.”

--With assistance from Lucca de Paoli, Cathy Chan and Myriam Balezou.

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