Many big banks, including Goldman Sachs, J.P. Morgan, Morgan Stanley and Deutsche Bank, have moved jobs from expensive cities like New York to lower-cost areas across the U.S. Now, Credit Suisse has joined them and has already started moving Wall Street jobs down to Raleigh, North Carolina, in keeping with a cost-cutting plan announced just last month.
While Credit Suisse has had a presence in Raleigh for more than 12 years, employing approximately 2,000 people, about 40% of whom are in technology, it recently decided to shift jobs to North Carolina from New York. The functions historically represented in the Raleigh office include operations, finance and technology in support of U.S. sales, trading and investment banking businesses.
Credit Suisse has also been adding risk management and cyber security professionals in Raleigh. The bank will continue to reduce its headcount at the New York office, currently close to 7,500, over time, while its plan is to increase Raleigh's staff by at least 1,200 and up to 2,000 over the next several years. The bank has plans to relocate close to 500 roles to Raleigh during 2017, with 150 roles already added in North Carolina either through staff relocations from New York or through local hiring.
“Raleigh is a hotbed of tech talent, and we are looking to expand there on the development side and increasingly around the new technologies related to cyber security, automation and data analytics,” said Dan Seabolt, a managing director and the deputy COO for combined U.S. operations at Credit Suisse. “Over the next several years, we’ll be executing a move of another 1,200 jobs from New York to Raleigh as part of a long-term structural change for services that support our U.S. businesses.
“We’re building out the risk function in Raleigh, as well as cyber security and additional technology capabilities, and we expect that Raleigh will be the main corporate hub to support our U.S. business,” he said. “We’ve already done a chunk of pretty meaningful hiring, and we’ve really accelerated our hiring engine locally.
“We’re moving managers and other staff, and when we mention relocation opportunities, we talk about the great quality of life and lower cost of living in Raleigh.”
Currently, Credit Suisse’s New York office has close to 7,500 people, but that number will decrease roughly in proportion to the increases in Raleigh, barring any surprises.
As Credit Suisse works toward its goal of having 2,500 Raleigh-based employees by the end of this year, it has acquired temporary office space and intends to build a second building there in the near future. That will enable the bank to cross 3,000 employees in North Carolina sometime next year with a maximum capacity of around 4,000.
Front-office roles will mainly remain in New York, while almost all of the additional headcount in Raleigh will be back- and middle-office roles, primarily technology infrastructure/IT (including cloud computing specialists), software/application development (including mobile and Java developers), finance, CCAR compliance, market risk, operational risk, credit risk and cyber security.
“In New York there’s been a fair amount of restructuring across the industry, but the revenue-producing sides of our business have been pretty active,” Seabolt said. “However, in general the businesses are still working through the process of making sure they’re as efficient and profitable as they possibly can be, which involves role relocations.
“Some roles will be moved down to Raleigh, although we expect a fair amount of local hiring,” he said. “We’re seeing an ability to manage that through normal attrition – we can’t do it exclusively, but if we see a departure in New York in certain areas, then we can look to potentially fill it in Raleigh, depending on the function.
“I expect Raleigh to grow and the New York office to reduce a commensurate amount in an organic, sustainable progression."
Credit Suisse has increased its virtual recruiting, especially for interns and graduate hires, many of whom will do their first interview via video conferencing. The current intern class that started recently in Raleigh is a feeder for the full-time technical analyst program.
Seabolt says that the total number of applicants for roles at Credit Suisse in Raleigh is up 81% year-over-year.
“Since the announcement, there's been a real level of interest in Credit Suisse, in terms of our intake of applications, and internal staff are pretty excited for the potential for job expansion,” Seabolt said. “A number of senior AVPs, VPs, directors and MDs are considering moving or discussing a move, and that will continue next year and the year beyond.
“People see it as another opportunity open to them, and we’re looking for managers and subject-matter experts who can seed our capabilities in Raleigh,” he said. “Based on the nature of how we’re looking to expand, I would expect a fair bit of uptick in our graduate intake, and we’re looking for folks with experience as well, because there’s a degree of turnover every year, and you need to replace that.”
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