Credit Suisse Group AG is to cut around 1,500 jobs in London by the end of next year as part of the efforts to cut costs worldwide.
The job cuts were after the $2.43 billion net loss for 2016 announced by Credit Suisse. Before the recent job cuts, the company had 9,000 staff across the UK, and London staff will drop to 5,000 after the cut.
According to an executive of Credit Suisse, high bonus and costs of doing business made it difficult for the company to get a profit, and Brexit made the situation even worse. Other countries in Europe will benefit from the cut. The company has already operated in Poland and opened a branch in Dublin over a year ago.
“For the Swiss banks, it was always important to be in London, not least to be close to your wealthy customers,” said Andreas Venditti, an analyst at Swiss bank Vontobel. “With Brexit, London has certainly lost some significance.”
UBS is also planning to cut positions of 1000 or more in City of London, and its chief executive said 30% of its 5,400 employees might be affected.