Turmoil and layoffs in the financial sector

04.02.2016 / 23:23

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Credit Suisse on Thursday reported its first annual loss since 2008.

On a call after the announcement, CEO Tidjane Thiam said the firm would cut bonuses by 36% in the global markets — or sales and trading — division. Thiam called it a "very, very severe level of remuneration cut."

The firm highlighted the trouble facing its global markets division in a presentation.

That division had "declining revenues against [a] high and inflexible cost base," according to the presentation.

The bank's global markets business generated 7.4 billion Swiss francs in revenue in 2015, down 14%, with fixed income responsible for the bulk of that drop.

The fixed-income trading business hurt banks across Wall Street in 2015.Morgan Stanley responded to the headwinds by cutting 25% of its headcount in that division, while Goldman Sachs said it would make adjustments to address the "cyclical and secular pressures" in that business.

Credit Suisse said it was cutting 4,000 full-time, consultant, and contractor jobs.

Deutsche Bank also posted a loss for 2015. Its senior executives' bonuses were canceled.

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Turmoil and layoffs in the financial sector

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