Credit Suisse is reportedly preparing to cut more than 10 per cent of its European investment bankers in 2023.

According to the Financial Times, the bank, which cut hundreds of staff from its London and Zurich offices in late 2022, has stepped up previously announced plans to reduce its 52,000 person workforce by up to 9,000 over the next three years. The move, the report says, comes as the bank prepares to announce its second consecutive year of loss.

Investment banks internationally are facing significant pressure after a poor 2022 for the sector. Goldman Sachs last week initiated its redundancy programme which will reduce its workforce by 3,000.

Credit Suisse however is in a more critical condition, with the bank suffering major client withdrawals in October 2022 when rumours began to circulate of poor financial health. It initially cut 2,700 roles globally in December, including 540 in Switzerland and up to 200 in London. The investment bank employs around 17,000 bankers globally.

The FT report adds that Credit Suisse could cut as many as a third of jobs in its smaller European offices, with its main centres of business being New York, London and Zurich.

Investment banking staff in New York who survive the cuts could be offered roles at the planned First Boston spin-off, which is set to be led by former Credit Suisse director Michael Klein. The business will largely be centred on the US market, leading to uncertainty over investment banking roles in Europe.

With Credit Suisse undergoing a period of major reorganisation, UBS chair Colm Kelleher has batted away suggestions that it could revisit plans to merge with its beleaguered domestic rival. The former chairmen of both banks, Urs Rohner and Axel Weber, supported a merger in 2020 but discussions eventually lapsed.

In an interview with Neue Zuercher Zeitung, the former Morgan Stanley president Kelleher plainly stated: "We have no desire to buy Credit Suisse.”

When asked about the prospect of a potential acquisition given the correct circumstances, Kelleher said that "there are always scenarios, but none that are convincing."

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