Last summer, Credit Suisse announced a plan to cut 3,500 jobs. A year later, it's still making redundancies under the initiative. The firm will fire 60 directors and managing directors in its European investment banking department, Reuters reports, nearly a third of the unit's head count.
Those affected work in mergers and acquisitions as well as financing and debt issues. Between 10% and 15% of managing directors will be laid off and a third of directors will be fired. Altogether, the bank wants to cut 7% of its workforce around the world.
These cuts aren't being made in a vacuum. Many banks around the world are doing the same, and they're likely to continue, according to Societe Generale research analyzed by eFinancialCareers. Employment in finance since 2007 has dropped by 7%, far less than during the last two major contractions. In 2001, headcount dropped by 16% and by 19% in 1987. Banks have a lot more cutting to do, the report concludes.
Another bit of bad news: The industry hasn't seen the last of smaller pay pools. The report says banks will cut compensation by 29% in coming months.
Asian Cuts (Reuters)
Asia may be cooling off after years of expansion. Layoffs are spreading at many big banks, especially in the equities arena.
New Gig (On Wall Street)
Mary Mack has been promoted to president of Wells Fargo's financial services group. She'll oversee the firm's advisory services. The firm is looking for someone to replace her as head of wealth brokerage services.
Changing Industries (FT Alphaville)
More and more scientists and engineers are forgoing the lab for the trading pit and are choosing to become hedge fund managers.
People Skills (Poets & Quants)
You may have the best quantitative skills on the Street, but if you don't know how to get along with people, they're all for nothing. So Wharton is incorporating a team-based discussion as a new component of its application process.
New Reach (DealBook)
Morgan Stanley is letting its 17,000 financial advisers have access to Twitter. The only catch is advisers will have to tweet from pre-approved thoughts. Buzzkill.
Thain Knows Best (Bloomberg)
John Thain recently won the "Best Dad" award from the Father's Day/Mother's Day Council Inc. We wonder whether his kids were polled.
Buzz Around the Office
The Ultimate Stepmother (Shine)
After giving birth to a litter of puppies just weeks ago, a two-year-old American bulldog named Molly is now nursing four young kittens who were orphaned when the family cat was hit by a car.
List of the Day: Summer Fridays
Everyone wants to take off Fridays during the summer, but only few will succeed.
1. You'll only get the privilege if you've made yourself indispensable to your company.
2. Draw up a plan to show your boss how you'll complete all your work by then.
3. Ask whether the flexible schedule might be rotated throughout your team.