Credit Suisse Considers Axing 5,000 Jobs In Cost Reduction Drive: Report

Credit Suisse Group AG CS is planning to cut around 5,000 jobs as part of a cost reduction drive, Reuters reported citing a source with direct knowledge of the matter.
The source said that the discussion about job cuts is ongoing. Swiss newspaper Blick earlier reported layoffs of over 3,000.
Credit Suisse is under increasing pressure to turn around the business and improve its financial resilience. The Swiss bank has dubbed 2022 a "transition" year.
Related: Credit Suisse's Largest Owner Asks For Sustainable Options For Troubled Investment Banking Unit.
Credit Suisse has already said it will cut costs below CHF 15.5 billion ($15.8 billion) in the medium term versus an annualized CHF 16.8 billion in 2022.
"Cutting cost is the easiest immediate step it can take. But it's not a strategy," said Andreas Venditti, an analyst with Vontobel. "You can end up in a vicious circle, where jobs are cut, service declines, and customers leave."
Venditti highlighted another conundrum: "Should restructuring costs, including from job cuts, run into the billions, the bank may also need to raise more capital."
Analysts at Deutsche Bank estimate it may need to bolster capital by CHF 4 billion to shore up its buffers and fund the revamp.
Price Action: CS shares are up 0.80% at $5.04 during the premarket session on the last check Friday.
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