Credit Suisse Announces 1,500 New Layoffs, Misses Earnings Even After Huge Accounting Gains

brady dougan credit suisse

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Credit Suisse announced it would cut another 3% of its workforce of more than 50,000 employees. This amounts to 1,500 layoffs, which is significantly more than the 1,000 number that floated yesterday.  These layoffs are part of new plans to cut costs by 800 million Swiss francs by the end of 2013.

These moves come on top of cost cuts and layoffs announced back in July.

The news came as the Swiss bank announced Q3 net income of 683 million Swiss francs.  Analysts were expecting 979 million Swiss francs.

“During the third quarter we experienced a challenging environment with a high degree of uncertainty, low levels of client activity across businesses and extreme market volatility,” said CEO Brady Dougan.

Its investment banking division reported a pretax loss of 190 million Swiss francs. Results included a massive 266 million debit valuation adjustment, a controversial accounting measure.

However, the bank has ambitious growth plans in emerging markets.

“Across our businesses we will allocate resources to faster-growing and large markets, especially Brazil, Southeast Asia, Greater China and Russia,” said Dougan. “This is expected to increase revenues from these markets from 15% in 2010 to 25% by 2014.”

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