Credit Suisse to cut 5,300 jobs after 1.7 billion pound loss

By Lisa Jucca

ZURICH (Reuters) - Swiss bank Credit Suisse (CSGN.VX) said on Thursday it was cutting 11 percent of its workforce, or 5,300 jobs, as it revealed it made a net loss of about 3 billion Swiss francs (1.7 billion pounds) in October and November.

The bank said the loss in the two months to end November, primarily in investment banking, where most of the job cuts will fall, was due to adverse market conditions and risk reduction.

More than 100,000 jobs have been lost in the financial industry as banks across the world slash costs to cope with the worst financial crisis since the Great Depression.

"These actions will better position us to weather the continuing challenging market conditions, capture opportunities that arise amid the continuing disruption, and prosper when markets improve," Chief Executive Brady Dougan said.

In addition, the bank will take a restructuring charge of 900 million Swiss francs, mostly in the fourth quarter.

Analysts at Wegelin said in a research note: "Restructuring costs are not yet included. Thus, the total fourth-quarter loss could well be closer to 4 billion francs."

On the brighter side, Credit Suisse said in November alone it was modestly profitable, and it also said its private banking segment was still seeing asset inflows and had hired 370 relationship managers this year.

Having fallen 9 percent on Wednesday, Credit Suisse shares reflected the positives, climbing 7 percent to 29.64 Swiss francs by 9:55 a.m., while the DJ Stoxx index of European banking stocks .SX7P was up 2.1 percent.