According to sources who declined to be identified because of the confidential nature of the matter, Credit Suisse Group Ag could be discontinuing the employment contracts of as many as 35 employees at its equities tranche in Asia.
The source went on to say that Credit Suisse is looking to cut sales, trading and research positions. The most recent phase of job cuts, which began approximately 2 months ago, should be concluded by the middle of the year.
Credit Suisse is reshuffling a markets business that was branded out as unsuccessful and dealing with reduced performance and client activity by the current Chief Executive Officer Tidjane Thiam when he announced first-quarter revenuesin April this year.
“In the first quarter equities trading profit decreased by 16 percent in the Asia-Pacific region, damaged by a drop in derivative trades,” said Robert Stutgart at China based BHB Equity
When contacted, Credit Suisse refused to offer any comment of the rumoured job cuts.
In addition, Switzerland-based financial institution, Credit Suisse is looking to decrease the size of the Asian equities unit’s overheads in an effort to make capital available for use in other more profitable areas.
This seems to be a growing trend as numerous other investment banking institutions reduced the scope of their Asian Equities businesses in 2016 with some departing from the sector altogether. In particular, Chinese markets have been experiencing a volatile phase that has made it increasingly difficult to anticipate market trends, contributing to the overall caution in sentiment.
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