"Credit Suisse can barely process the job cuts it's made already"
As Credit Suisse prepares to make what Reuters reports could be another 5,000 job cuts when it announces its restructuring plans in October, insiders claim the Swiss bank has already been struggling to process existing headcount reductions.
"People here are having to wait a long time for their severance payments, and the delays are increasing as more and more people are falling into the severance pool," says one insider working for the bank in the US.
Credit Suisse declined to comment on the claims, which are apparently delaying the ability of those laid off by Credit Suisse to find new jobs. In the past, people let go by the Swiss bank in the US were paid severance amounting to two weeks for every year of service within a few weeks of being informed that they weren't needed. Now, there are complaints that it's taking up to two months to process the severance claims and that individuals who find new jobs in the meantime are having to forego the payments. "It's very difficult: no one wants to sit on the payroll for that long," says the insider.
The allegations come ahead of the Swiss bank's restructuring announcement in October. Earlier this week, Deutsche Bank analysts said the bank has a $4.1bn capital gap, which it could help close by selling the securitized products business and pulling out of high yield trading and leveraged finance.
Credit Suisse's recent job cuts include people let go from the prime broking business. Although it was closed late last year, some were reportedly kept on to wind things down.
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