Credit Suisse announces radical restructuring, plans to cut 9,000 jobs

Oct. 27 (UPI) -- Swiss banking giant Credit Suisse said Thursday it will radically restructure the bank, cutting 9,000 jobs by the end of 2025 in an effort to cut heavy losses while addressing investor concerns.

The bank said 2,700 job cuts are already underway, but did not specify where the cuts are being made. The bank's full-time workforce will go from 52,000 to 43,000 by the end of 2025.

"This is a historic moment for Credit Suisse. We are radically restructuring the Investment Bank to help create a new bank that is simpler, more stable and with a more focused business model built around client needs," CEO Ulrich Körner said in a statement.

The Credit Suisse statement said it will seek $4 billion in new financing, including $1.5 billion from the Saudi National Bank. Credit Suisse said it will focus on wealth management.

"Credit Suisse intends to take decisive steps to restructure the Investment Bank and focus on areas more closely connected to its core businesses where it has a competitive advantage," the bank's statement said.

According to Credit Suisse, the restructuring will cut costs by 15% in a comprehensive cost transformation program that the bank said "will go deeper and further than the bank has previously indicated to substantially improve long-term efficiency while retaining a focus on strengthening risk management and investing in Credit Suisse's core businesses."

"I am convinced that this is the blueprint for success, helping rebuild trust and pride in the new Credit Suisse while realizing value and creating sustainable returns for our shareholders," Axel P. Lehmann, chairman of the board of directors of Credit Suisse, said in a statement.

On Monday Credit Suisse said it has agreed to pay $234 million to settle a French criminal money laundering investigation -- allegedly helping clients launder tax fraud proceeds.

Credit Suisse has been troubled by both heavy losses and scandals.

On Monday, the bank announced it had agreed to pay $234 million to settle a French criminal investigation into whether the Swiss bank helped its clients launder tax fraud proceeds.

In June, the bank said it would appeal a Swiss criminal court decision against it in a $2.1 million cocaine money laundering case.

In 2020, former CEO Tidjane Thiam resigned amid a surveillance scandal involving former employees.