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Credit Suisse warns on Q2 loss, mulls workforce reduction to save costs

Benzinga Real-time News ·  Jun 8, 2022 08:39

  • $Credit Suisse(CS.US)$ is looking for another round of job cuts to manage costs after warning of a second-quarter loss, Bloomberg reported citing people familiar with the matter.

  • The people said that the bank is mulling headcount reductions across divisions and regions. Final numbers are still to be decided, they said. 

  • The dismissals come ahead of the bank's update to investors on risk, compliance, technology, and wealth management on June 28.

  • Credit Suisse warned it expects a loss at the group-wide level and its investment bank in the second quarter. Market conditions have remained challenging after the invasion of Ukraine and monetary tightening by central banks across the world, leading to weak customer flows and ongoing client deleveraging.

  • "Given the economic and market environment, we are accelerating our cost initiatives across the Group to maximize savings from 2023 onwards," Credit Suisse said, without providing more details.

  • Price Action: CS shares are down 6.77% at $6.94 during the premarket session on the last check Wednesday.

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