Credit Suisse plans to shut 35 Swiss branches and merge a subsidiary as part of $110 million spending cuts. One of its longest-standing technology bankers is leaving as a result.

The Zurich-based bank wants to reduce its branch network in Switzerland to 109, from 146 currently, as part of a response to increased digitization by its clients, it said in a statement on Tuesday. The move will result in as many as 500 jobs being cut as well as the merger of subsidiary Neue Aargauer Bank, a Swiss regional bank.

The program's restructuring costs of 75 million francs are to be booked over the coming year. The measures will cut Credit Suisse's spending by 100 million Swiss francs ($110 million) by 2022. The bank plans to plow a large part of this back into initiatives in Switzerland including more relationship managers and into technology, digitization, and marketing. 

Merger of Top Jobs

As a result of the move, technology veteran Mario Crameri is out of a role at Credit Suisse: the direct banking push he took on last September under Thomas Gottstein, who is now CEO of the overall bank, is being merged with Anke Bridge Haux's digitalization job.

Credit Suisse planned the release of a new offering from its digital bank as well as a new branch concept for next week. «By bundling our resources in the area of digitalization, we can embark on the next phase of our digital strategy with a leaner organization, thus ensuring the rapid provision of innovative digital solutions for our clients,» Swiss boss André Helfenstein said.

Flagship Branch

The investments will be showcased in a new branch at Europaallee, a newer development close to Zurich's main station. Credit Suisse said it will launch a new digital offering
at the end of October that combines the flexibility and lower cost of a digital bank with the range of products and services offered by Credit Suisse's universal bank in
Switzerland.

Credit Suisse has held NAB, the subsidiary, since 1994 and managed at arm's length. It employs 530 people, and maintains a home equity loan book of 19 billion francs as well as assets under management of 19.1 billion francs. Though the two banks have already eliminated some duplications, they still maintain dual structures which will fall with the merger.