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Credit Suisse weighs cutting around 5,000 jobs – source

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ZURICH — Credit Suisse is weighing plans to eliminate around 5,000 jobs across the group — around one job in 10 — as part of a cost-cutting drive at the bank, a source with direct knowledge of the matter told Reuters.

The discussions are ongoing and the number of reductions could still change, the person said.

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The bank declined to comment beyond its previous remark that it would give an update on its comprehensive strategy review with third-quarter earnings and that any reporting on potential outcomes before then was speculative.

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Credit Suisse in July named asset management boss Ulrich Koerner as its new CEO, who is tasked with scaling back investment banking and cutting more than $1 billion in costs to help the bank recover from a string of scandals and losses.

Switzerland’s second-biggest bank has dubbed 2022 a “transition” year with a change of top management, restructuring aimed at further trimming investment banking and bulking up its flagship wealth management business.

A new strategic review announced in July, the bank’s second in less than a year, will evaluate options for its securitised products business to attract third-party capital while reaffirming its commitment to asset management.

Credit Suisse shares, which have fallen by more than 40% this year, were down 3.5% in late trading after touching an all-time low amid a selloff in the banking sector. (Reporting by Oliver Hirt, writing by Michael Shields; editing by Elisa Martinuzzi and John O’Donnell)

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