MutualFundWire.com: Credit Suisse Will Trim Headcount By 12 Percent

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Wednesday, February 15, 2017

Credit Suisse Will Trim Headcount By 12 Percent

Tidjane Thiam is planning big staff cuts at Credit Suisse [profile], though it's not clear what the cuts mean for the Swiss multinational's asset management business.

Tidjane Thiam
Credit Suisse
Chief Executive Officer

Yesterday on an earnings call with analysts (see Seeking Alpha's transcript of the call), Credit Suisse chief financial officer David Mathers confirmed that the plan is to reduce worldwide headcount by between 5,500 and 6,500 in 2017. Credit Suisse has 47,170 employees worldwide, so the planned reductions amount to between 11.7 percent and 13.8 percent of total staff.

Credit Suisse isn't breaking down the planned headcount reduction by business line or region, a company spokesman tells MFWire. Yet he confirms that the cuts will come across all businesses. Asset management is part of Credit Suisse's international wealth management division.

Thiam, CEO of Credit Suisse, told analysts on the call that the bank has seen "much improved performance in asset management." Mathers said that fiscal 2016 pre-tax income in asset management rose 54 percent from 2015 while expenses in fiscal Q4 2016 fell 16 percent year-over-year.

Credit Suisse reported fiscal Q4 2016 results yesterday. The New York Times reported on the planned cuts.

The cuts follow even bigger cuts in 2016. The plan was for Credit Suisse to reduce headcount by 6,000 last year. Yet they ended up reducing it by 7,250, 21 percent more than planned.

Printed from: MFWire.com/story.asp?s=55719

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