Credit Suisse’s China-based business has laid off about one-third of its investment banking team and about half of its research department, Reuters reported Tuesday.
The layoffs come less than a month after the bank outlined a plan to cut 9,000 jobs over the next three years — with 2,700 of the downsizing coming this quarter. Apart from aiming to break up its investment bank and focus on serving institutional and wealth management clients, Credit Suisse has seen a slowdown in its China business.
A spokesperson for Credit Suisse did not return a request for comment to Banking Dive and declined to comment on the layoffs when contacted by Reuters.
More than 20 investment bankers have been laid off by Credit Suisse Securities (China), the bank's 51%-owned joint venture, two sources told Reuters. Credit Suisse had 68 people in its investment banking department last year, according to the bank’s annual report. The bank reduced its China-based research staff by about 10 from 24, Reuters reported.
Strict COVID-19 restrictions have pushed Wall Street banks to cut China-focused jobs in Asia, Reuters reported.
Credit Suisse isn’t alone in taking the ax to investment-banking jobs based in Asia.
Goldman Sachs in September cut 25 jobs in China — presumably the first of hundreds of layoffs for the bank this year.
Morgan Stanley, meanwhile, is considering eliminating roughly 50 investment-banking jobs based in the Asia-Pacific region, Reuters reported this month.
Citi cut roughly 50 trading personnel and dozens of investment-banking employees this month. And Barclays, at the same time, launched a workforce reduction encompassing roughly 200 jobs.
