Swiss banking giant Credit Suisse (NYSE:CS) is reportedly planning significant layoffs. Unnamed sources say the bank is considering cutting its European investment unit staff by up to 30%, The New York Times reports.
The bank saw its credit rating downgraded three notches last week by Moody’s rating agency. That was the harshest cut of any of the 15 banks downgraded by Moody’s. Credit Suisse has also been warned to raise its capital reserves by Switzerland’s central bank.
The new cuts are part of an effort to restructure its operations. Last year the bank announced plans to terminate 3,500 jobs. It will shed 126 jobs at its New York operations this summer. Credit Suisse says it had trimmed 2,000 jobs by the beginning of April.
Shares of Credit Suisse slipped more than 1% in Tuesday afternoon trading in New York.
UBS (NYSE:UBS) has also announced plans to reduce its workforce by 3,500, with many of those job cuts coming from its investment banking unit.