Round Two

More Cuts at Credit Suisse

tidjane thiam.bloomberg.Alessandro Della Bella
Credit Suisse CEO Tidjane Thiam is taking another pass at restructuring efforts.
  • Why it matters

    Why it matters

    The old strategies of Deutsche Bank and Credit Suisse have been rendered obsolete by market turbulence, including worries about a crash in China and a plunge in oil prices.

  • Facts

    Facts

    • Since October 2015, Credit Suisse stock has fallen some 40 percent.
    • Chief executive Tidjane Thiam announced plans this week to cut costs by 3 billion Swiss francs, or about $3.08 billion, by 2018.
    • At Credit Suisse, trade volume in bonds fell by 40 to 45 percent in the first quarter.
  • Audio

    Audio

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Last year Tidjane Thiam took over as chief executive of Swiss banking giant Credit Suisse. His mission? To breathe new life into the share price with a convincing strategy – just as he did at British insurer Prudential.

But so far there have only been setbacks. The strategy he announced last October disappointed markets – and a fourth quarter loss of more than 5.8 billion Swiss francs, or about $5.95 billion, has horrified many. Since October, Credit Suisse stock has fallen some 40 percent.

Now Mr. Thiam is trying again. Instead of cutting net costs by 2 billion Swiss francs by 2018, he aims to chop 3 billion. And 2,000 more jobs will be eliminated, raising the total to 6,000.

Again, most of the austerity measures will fall on the investment banking division. Last October Mr. Thiam announced that the balance should contain $83 billion to $85 billion in risk-weighted assets. Now the goal is down to $60 billion.

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