Credit Suisse will let go of about 1,500 employees in London by the end of 2018, per Reuters, a decision that comes as the investment bank joins its peers in scaling back in the British capital ahead of the UK ramping up Brexit negotiations. Fellow investment banks including UBS, Goldman Sachs and Morgan Stanley have considered reducing operations in London and shifting to other European cities since last June’s Brexit vote, but Brexit is only part of the story.
The decision to reduce Credit Suisse staff in London to roughly 5,000 first emerged in 2015, with Reuters reporting that the bank’s CEO Tidjane Thiam sought to cut costs by restructuring operations in London, where it had once employed more than 9,000. Although it doesn’t bracket off its London performance, Credit Suisse has reportedly found it more difficult to turn a profit there. The move is also consistent with Credit Suisse’s pivot toward emerging markets in Asia and its 2016 launch of a trading floor in Dublin.