Credit Suisse has announced plans to restructure its business after recording a quarterly loss of £3.5 billion.
The Swiss bank said that it would cut its workforce by 9,000 people by the end of 2025.
The organisation has already started axing jobs, with 2,700 full-time staff members – or five per cent of the group’s workforce – set to go by the end of the year.
Credit Suisse blamed its poor financial results on the challenging economic and market environment, as well as the combination of monetary tightening by major central banks and the ongoing geopolitical situation following Russia’s invasion of Ukraine.
It also attributed part of the loss to negative press and social media coverage about the bank’s potential collapse, which the bank denies.
Credit Suisse said that performance in the investment bank was “weak”, driven by what it described as extremely challenging market conditions caused by higher volatility.
Its wealth management division was also impacted by lower client activity and recurring revenues.
“The third quarter, and more broadly 2022 so far, have been significantly impacted by the continued challenging market and macroeconomic conditions, leading to a weaker performance for our Investment Bank in particular,” said Ulrich Körner, chief executive, Credit Suisse Group. “Our recent Group level performance has been disappointing for our stakeholders.”
The results come after several scandals at the international investment bank, including the issuance of corrupt loans worth $1.3 billion.
The Financial Conduct Authority (FCA) fined Credit Suisse £147 million for serious financial crime due to due diligence failures related to loans the bank arranged for the Republic of Mozambique.
In June, a Swiss criminal court found Credit Suisse guilty of failing to protect the global investment bank against money laundering.
The court fined Credit Suisse roughly £1.7 million (CHF 2 million) for breaking the a criminal code.
It also forced the bank to pay more than £16 million (CHF 19 million) in compensation.
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