Credit Suisse is reportedly planning to initiate a new round of layoffs in one of its China units, which could impact over 40 employees. The unit, known as Credit Suisse Securities (China) and 51 per cent owned by Credit Suisse, is taking this measure to cut costs following its recent takeover by former Swiss rival UBS (UBSG.S).
The cuts are expected to begin as early as July 24 and may impact approximately 20 per cent of the local workforce. The most affected departments are likely to be the wealth management and investment banking divisions. The total number of layoffs could reach up to 100 employees by the end of the year if the cost control efforts continue.
The joint venture between Credit Suisse and Founder Securities, which recorded a net loss of 254.5 million yuan ($35.27 million) in 2022, is aiming to control spending as it seeks to address its financial challenges.
As of the end of 2022, the local unit had 234 staff members, with 58 in investment banking and 36 in wealth management-related businesses. However, these numbers are subject to change due to the ongoing restructuring and potential sale of the joint venture.