CSFB to cut 1,750 jobs

Investment banking giant Credit Suisse First Boston added to the gloom in London today by outlining plans to axe up to 1,750 jobs.

Chief executive John Mack blamed deteriorating market conditions as he announced the cuts to staff in an internal e-mail.

He said: “Eliminating jobs is never easy, but it is especially difficult when people have been working so hard for the firm.

“Unfortunately, in this environment, to be competitive, we simply have no alternative. And we owe it to our shareholders.”

CSFB, part of Swiss banking giant Credit Suisse, hopes to save $500m (€510m) through the cuts.

The bank has already shed 4,500 jobs, 16% of its global workforce, in the 15 months since Mr Mack joined the firm last July.

CSFB’s latest cost-cutting drive will begin this month and will reduce staff numbers by between 1,500 and 1,750.

It refused to say how many staff would be affected at its Canary Wharf headquarters in London.

The investment banking community has been hammered by a sharp downturn in merger and acquisition activity and tumbling share prices.

Mr Mack said the value of worldwide merger deals had fallen 37% in the past year and was down 70% on levels seen two years ago.

He added that only seven IPOs – flotation's – were tabled in the US in the third quarter, the fewest since 1980.

Credit Suisse said last week it would report poor results for the third quarter of its financial year, due in part to losses at CSFB.