According to reports, Credit Suisse is preparing to start a new round of layoffs in one of its China units, which could affect more than 40 workers. Following its recent acquisition by former Swiss rival UBS, the unit, known as Credit Suisse Securities (China), which is owned by Credit Suisse to the tune of 51%, is taking this action to reduce costs.
The layoffs could affect 20% of the local workforce and are anticipated to start as early as July 24. The wealth management and investment banking divisions are probably the most impacted departments. If the cost-control efforts continue, the total number of layoffs could reach up to 100 by the end of the year.
In order to deal with its financial difficulties, the joint venture between Credit Suisse and Founder Securities, which posted a net loss of 254.5 million yuan ($35.27 million) in 2022, is attempting to control spending.
The local unit employed 234 people as of the end of 2022, including 58 in investment banking and 36 in companies with a focus on wealth management. These figures could alter, though, as a result of the ongoing restructuring and potential joint venture sale.