Swiss bank Credit Suisse plans to lay off one-third of its senior employees within its European investment banking department. This comes with the recent downturn of the European economy and little financial growth.
"In the European investment banking business, they are going to get rid of 60 directors and managing directors," a source told Reuters on Monday.
Credit Suisse had plans to lay off executives since last year. In 2011, they announced future plans to cut 3,500 jobs within the bank worldwide. Also part of their plan was to rid of $2.1 billion in yearly spending by the end of next year.
The job cuts will mostly impact bankers who aid in mergers and acquisitions, as well as financing, debt, and stock market listings.
"It is about a third of the directors and 10-15 percent of the MDs," one of the sources said.
The public had recently been warned by Swiss regulators that it was vital that they increase capital.
Credit Suisse plans on starting job cuts in July and may continue for several months after that.
Another source said the job losses could affect 20-30 percent of European senior investment banking staff.
Credit Suisse is not alone in corporate job cuts following the tough European economy. Close to 4,400 security industry jobs were cut from January to March of 2012 just within the United States.
Globally, many other banks have also been cutting jobs. Up to 50 people in Asia have lost banking jobs within the past three weeks and there are plans for even more cuts.
Credit Suisse previously announced plans to cut 126 jobs within New York State by August 6.
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