Credit Suisse is said to be cutting the majority of its Hong Kong-based investment banking staff this week as part of its broader restructuring plan.
Around 80 percent of Credit Suisse’s Hong Kong-based investment banking staff will be laid off with the cuts commencing this week, leaving about 20 bankers in the unit, according to a «Reuters» report citing unnamed sources. Hong Kong accounts for the largest share of Credit Suisse’s investment bankers in Asia.
According to the sources, those staying on board will work on mergers and acquisitions. As part of its integration with UBS, Credit Suisse will be able to keep only one or two employees on its Hong Kong investment banking teams, with some teams being eliminated, according to the report.
Credit Suisse has an investment banking presence in China, Singapore, Vietnam, Australia, Thailand, and India. The report didn't give an overall investment banking headcount for the region.
Broad Restructuring
The cuts are part of broader restructuring efforts following the Swiss government-backed takeover of Credit Suisse by UBS in June. Since the deal was announced, UBS has underlined that it will look to reduce risk in Credit Suisse’s investment banking unit.
In June, reports emerged UBS would begin shedding 30 percent of a staff of around 120,000 from the combined workforce following its takeover of Credit Suisse. The cuts were expected to begin in July as part of the first of three rounds of cuts that are to continue in September and October.
So far, UBS has been mum on its plans for Credit Suisse and plans to reveal more when it releases second-quarter results at the end of August.
