Job cuts in the cards at Credit Suisse following third profit warning of the year

A new round of job cuts is part of a renewed push to slash costs, according to people familiar with the matter.

The people, who asked not to be identified as the matter is private, said that the Swiss bank is considering a reduction in staff.

As the bank prepares to update investors on risk, compliance, technology and wealth management, the dismissals are likely to come. They said that final numbers are still to be decided. The spokeswoman pointed to the lender's statement on Wednesday.

The investment bank is expected to have a loss in the second quarter, according to the bank. Weak customer flows and ongoing client deleveraging are a result of the challenging market conditions after the invasion of Ukraine.

In light of the economic and market environment, we are speeding up our cost initiatives across the Group to maximize savings from 2023 onwards.

The collapse of Greensill Capital and a string of profit warnings that eroded investor confidence and prompted an exodus of talent have been some of the things that have happened to Chief Executive Officer Thomas Gottstein. The lender wants to reduce risk at the investment bank and shift resources to wealth management in a year's time.

More than 50,000 people were employed by the Swiss lender at the end of 2011. After five profit warnings in the past six quarters, the CFO, legal counsel and head of Asia would either step down or leave the company. The Europe, Middle East and Africa region was headed by the former Bank of Ireland Group.

The bank had been struggling to keep up with rivals trading results because of Archegos. The fixed income business did worse in the first quarter than in the previous one. Legal hits and weaker-than- expected wealth management results are some of the steep challenges still facing the bank as it seeks to regain investor confidence.

There are a lot of macro factors outside of his control that could derail the recovery. Fees for the private bank are being hurt by wealthy investors sitting out the market's fluctuations. Supply chain disruptions and M&A activity have taken a hit after Russia invaded Ukraine.