Credit Suisse to slash 80% of Hong Kong investment bank jobs starting this week

About 80 per cent of Hong Kong-based investment banking staff at Credit Suisse will be made redundant this week, According to two people with knowledge of the matter. The move is part of the bank's integration with UBS Group.

Around 20 bankers will be spared from the cuts impacting a 100-strong investment banking team of Credit Suisse in the territory, as per the people, who declined to be identified as discussions on the matter were private. Hong Kong accounts for the company's largest share of investment bankers in Asia.

Credit Suisse and UBS declined to comment.

Risk reduction 

UBS closed a Swiss government-backed deal to buy its troubled peer in June after a series of soured deals sparked an exodus of clients. It has since said it would reduce risk in Credit Suisse's investment banking operation.

Last week, UBS laid off employees from Credit Suisse's investment bank in New York, according to Reuters, citing a source familiar with the situation. UBS has decided to close Credit Suisse's Houston office, as per the source.

Market participants expect UBS to give more detail on its integration plans this month. Its targets and indications from insiders and analysts indicate cuts amounting to about a third of the group's combined global workforce.

According to a Reuters report in June, UBS was looking to retain more than 100 Credit Suisse investment bankers across Asia to shore up talent in markets where the latter has a stronger presence.

Where are Credit Suisse's investment bankers located?

Besides Hong Kong, Credit Suisse has investment bankers in regional markets such as China, Singapore, Vietnam, Australia, South Korea, Thailand, and India. The total investment banking headcount in the region was not immediately known.

As part of the integration, most Credit Suisse investment banking teams in Hong Kong will be able to keep just one or two staff, though certain sector coverage teams will be removed entirely, the two people said, adding that those retained will mostly work on mergers and acquisitions.

Christian Deiss, head of Credit Suisse's Asia-Pacific M&A business since 2021, is leading the regional investment banking transition in collaboration with UBS, the people said. Deiss did not immediately respond to a request for comment.

(With Reuters inputs)