Credit Suisse intends to axe 9,000 employees and divide its dealmaking unit.

The banking giant is carrying out a drastic revamp in an effort to turn things around following a string of scandals and billions in losses.

The global investment bank will lay off 2,700 people in the fourth quarter of this year.

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It also expects to reduce workforce numbers by 9,000 by the end of 2025.

This represents around 17 percent of the company’s existing 52,000 headcount.

Credit Suisse will also relaunch the First Boston brand, which it acquired in 1990.

In this move, it is splitting its dealmaking division from the rest of its investment bank.

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The name, which echoes back to Credit Suisse’s pre-crisis heydays, indicates a shift to the US for its investment bank.

The Boston unit will also seek external funding for its leveraged finance operations.

A new cost-cutting scheme will disproportionately affect the investment bank.

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As a result, the Swiss bank will withdraw 40 percent of its risk-weighted assets, putting greater focus on its more profitable wealth management section.

Moreover, this will be spun out into a new capital release entity, commonly known as a “bad bank.”

As it winds down $35 billion in assets, it divides the firm into three primary divisions: investment banking, capital release, and the rest of the company.

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Credit Suisse has been shaken by a slew of scandals, including a $5.5 billion blow from the fall of family office Archegos Capital in March.

It was reported that staff at the Swiss bank have been aggressively sought by rival banks in recent months in anticipation of layoffs.

Source: Financial News

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