Credit Suisse on Tuesday announced that it would realign its local services and shift to online banking, with around 25 percent of its branches in Switzerland to be shut down, affecting hundreds of employees.
Switzerland's second-largest lender could render some 500 staff unemployed in its Swiss banking division as the company works to produce up to $110 million (100 million francs) in yearly savings in its proposed transition to digital banking in order to cut its so-called branch footprint.
During a meeting, Credit Suisse Universal Bank director Andre Helfenstein disclosed the job cuts after the group said it would merge its regional subsidiary Neue Aargauer Bank AG branch under the Swiss lender brand as part of proposals to save nearly $110 million yearly starting in 2022. The 171-year-old Neue Aargauer has 530 personnel and more than $20 billion of assets under management.
The plan is part of a group-wide $440 million savings program that Credit Suisse launched last month. A considerable portion of the amount will be reinvested into its Swiss business, specifically on new digital offerings and customer relations, the lender disclosed.
In a statement, the lender stated said the changes to its branch system across the country, including outlets in Canton Aargau, are projected to be carried out by end of the year.
According to Helfenstein, the transformations being made at Credit Suisse's branches represent a coherent step forward. Thomas Gottstein, the lender's new CEO, introduced late last month his strategies for the company, which involve regrouping its multiple investment banking operations.
Helfenstein pointed out that with the objective of overhauling 109 locations, in contrast to its current 146, Credit Suisse expects to push forward to establish a firm regional presence in the coming years.
Meanwhile, other major banking institutions across Europe have also announced closures as the coronavirus crisis has fast-tracked the transition to online banking.
