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Credit Suisse issues profit warning, announces big job cuts

world Updated: Dec 04, 2008 14:30 IST

AFP
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Swiss banking giant Credit Suisse said on Thursday it had suffered a 3.0 billion Swiss franc loss at the end of November and announced plans to cut 5,300 jobs, 11 per cent of its work force.

The company said in a statement that it had an estimated net loss of 3.0 billion Swiss francs (1.95 billion euros, 2.5 billion dollars) at the end of November.

This reflected "the impact of adverse market conditions in the quarter and costs associated with (a) risk reduction program, primarily in investment banking."

But it added that it had been "modestly profitable" in November and benefited from "solid asset inflows" in its private banking unit.

Nevertheless, the bank said it would eliminate 5,300 jobs from its work force of 51,300 between now and the first half of 2009. Most of the cuts would come in the investment banking unit and would mean a savings of 2.0 billion Swiss francs.

"These actions will better position us to weather the continuing challenging market conditions, capture opportunities that arise amid the continuing disruption and prosper when markets improve," Credit Suisse chief executive Brady Dougan said in the statement."

Credit Suisse shares fell 5.78 percent to 26.10 Swiss francs in early trading on Thursday on the Swiss Market Index.