Swiss Banks Planning Mass Layoffs to Cut Costs

By Palash Ghosh | July 26 2011 9:54 AM

Swiss banking giant Credit Suisse may slash up to 2,000 jobs to reduce costs, according to a Swiss newspaper.

REUTERS

Credit Suisse is expected to announce job cuts in the U.S. and Switzerland due to sluggish client activity. (A sign pictured outside of Credit Suisse U.S. headquarters in New York City, July 15, 2011.)

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The Neue Zuercher Zeitung (NZZ) said the will make such an announcement on Thursday, coinciding with the release of quarterly results.

Another Swiss paper, Handelszeitung, said last month that Credit Suisse was prepared to cut several hundred positions in its investment banking areas, particularly in the U.S.

Another major Swiss bank, UBS is also seeking to cut its workforce.

UBS posted a disappointing second–quarter results, which were hurt by a strong Swiss Franc as well as tepid markets.

As of 9:52 a.m. (EDT), UBS shares are down 3.79 percent in New York trading, while Credit Suisse stock is up slightly, by 0.22 percent.

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