According to yesterday’s news, Credit Suisse is due for another round of jobs cuts. The Swiss bank is rumoured to be planning another 1,000-2,000 redundancies according to the Swiss paper Sonntag, which claims to have spoken to CS insiders.
This time last year, Credit Suisse made numerous redundancies in its fixed income business after announcing a ‘global efficiency exercise’ and the elimination of 3,500 people across the bank.
More recently, headhunters say CS has been indulging in a spot of hiring.
The most obvious example of this is Mike Foster, a former central bank salesman from Goldman Sachs who has been hired into a similar role at Credit Suisse (but has yet to arrive). A spokesman confirms that Foster will join as head of EMEA Central Bank Rate Sales in early November, reporting to Ernest VanVredenburch, Head of EMEA Rate Sales. Foster’s arrival follows the departure of several Credit Suisse salespeople last year. Among them was Gerard Fox, a former Credit Suisse MD who left in November 2011 and is now running a vineyard in Southern England.
Credit Suisse is also said to be hiring a Nordic rates salesman from RBS and it allegedly bid for Ray Bowers, a former hedge fund salesman from Citi who’s said to be joining JPMorgan.
Credit Suisse declined to comment. One fixed income headhunter who requested that he remain unnamed said CS has, “certainly not replaced” all the people it let go last year. However, he claimed it has been trying to hire quite a few people for its fixed income business in London: “Most of the people they’ve wanted to hire have been bid back or have gone somewhere else. The pay structure means that Credit Suisse isn’t top of the list of where people want to go.”
Some of Credit Suisse’s ex-fixed income professionals have turned up at other firms. Stuart Wilson is now at Mitsubishi UFJ. Dirk Wiemer joined Nektar Asset Management with former CS colleague Ralf Siebel.
One headhunter say Credit Suisse’s move to hire Michael Foster at this time of the year is symptomatic of a lack of strategy. Foster would have been an expensive to lure across, he points out. However, the bank is unlikely to bring on any other big fixed income names before the end of 2012: headhunters claim it’s unwilling to make any other additions until January, but there may be more ‘upgrades’ in 2013.