Zurich-based Credit Suisse is reportedly considering new ways to slash its costs after a poor performance in the last quarter.
An unnamed source told the Swiss newspaper SonntagsZeitung that the bank’s numbers are “catastrophic” and that staff morale has been low, Reuters reported Sunday (July 24). It comes as managers and the board of directors have begun talking about a new, expansive plan designed to save costs.
Credit Suisse had initially hoped that 2022 would be a “transition” year after numerous scandals, per the report, which ended up almost completely reshuffling the top management.
Some of its scandals had to do with a $5.5 billion loss on the default of Archegos Capital, its U.S. family office, along with the loss of $10 billion for its supply chain finance funds.
There’s an “advanced” stage for the cuts, though it’s not certain when they’ll be reported — possibly when the company reports second-quarter earnings Wednesday (July 27). The company had previously said it would post a loss for this quarter, which would be its third in a row.
Credit Suisse did not respond to a request for comment by PYMNTS.
Late last month, PYMNTS wrote that Credit Suisse had hired Rick Wolfgram, who was previously a managing director for Truist Financial Corp, to be managing director of its tech investment banking group.
See also: Credit Suisse Pilfers Ex-Truist Exec Rick Wolfgram for Tech Investment Role
With Truist, Wolfgram reportedly worked on transactions like initial public offerings (IPOs) for companies, which included Coursera, DoubleVerify, NerdWallet, Udemy and Snap.