Credit Suisse to cut 80% of Hong Kong investment bank jobs from this week

Only about 20 bankers will be spared the cuts that will impact Credit Suisse’s 100-strong investment banking team in the territory, the people said, declining to be identified as discussions on the matter were private.

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.

UBS laid off employees from Credit Suisse’s investment bank in New York last week, Reuters reported, citing a source familiar with the situation. UBS has also decided to close Credit Suisse’s office in Houston, the source said.

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

As part of the integration, most Credit Suisse investment banking teams in Hong Kong will able to keep just one or two staff, though certain sector coverage teams will be removed entirely, the two people said.

Those retained will mostly work on mergers and acquisitions (M&A), they said.