Credit Suisse Group (NYSE:CS)(GB:0QP5) is planning to remove more than 20% of its investment bankers in Europe in 2023, the Financial Times reported. The Switzerland-based bank has about 17,000 investment bankers worldwide, mainly in New York and London. Last month, the embattled bank slashed hundreds of jobs in London and Zurich.
In October 2022, Credit Suisse announced that it intends to reduce its employee count by 9,000 roles globally by 2025. It witnessed huge client withdrawals in October 2022 following social media reports about the bank’s financial health.
The company seems to be ramping up its job cuts as it is set to report a second consecutive year of losses. Credit Suisse is scheduled to report its fourth-quarter results on February 9, 2023. In November 2022, Credit Suisse warned that it expects to report a loss of up to SFr.1.5 billion for Q4 2022 due to substantial outflows of client funds. Given a tough business backdrop, Credit Suisse is reportedly considering cutting its bonus pool for 2022 by about 50%.
Growing fears of a potential recession are forcing several banks to reduce their headcount and streamline their operations. Last week, Bloomberg reported that Goldman Sachs (NYSE:GS) will eliminate about 3,200 jobs, with the scale of layoffs being the largest since the 2008 financial crisis. Banks are particularly facing trouble in their investment banking divisions as lower deal activity has impacted equity and debt underwriting.
What is Credit Suisse’s Price target?
Wall Street’s Hold consensus rating for Credit Suisse is based on two Buys, seven Holds, and five Sells. Meanwhile, the average Credit Suisse Group price target of SFr.3.62 implies 15.5% upside potential from current levels. Shares have plunged 64% over the past year.