An Aug. 1, 2014 file photo shows the logo of Swiss bank Credit Suisse and a Swiss flag in Zurich, Switzerland.(Photo: Steffen Schmidt, AP)
Swiss banking giant Credit Suisse said Thursday that it would eliminate about 4,000 jobs as it attempts to cut costs following a huge quarterly loss.
Credit Suisse posted a net loss for the fourth quarter of 5.3 billion Swiss francs ($5.3 billion), compared to a net profit 691 million francs a year earlier. Tidjane Thiam, the bank's CEO, said the job cuts would save the firm about 1.2 billion francs per year.
Thiam indicated that the poor performance was linked to a number of different factors including sharply falling oil prices, diverging monetary policies by global central banks, a strong Swiss franc and slowing economic growth in China.
Revenue fell 34% to 4.2 billion francs.
The company lost even more on a pre-tax basis: 6.4 billion Swiss francs. Credit Suisse said the pre-tax loss included “substantial charges which are not reflective of our underlying business performance" and were partly a result of an acquisition of an investment bank in the year 2000.
Thiam previously said that he planned to reduce employee numbers at the bank but did not specify a number.
Dutch energy giant Royal Dutch Shell separately confirmed Thursday that it would cut 10,000 jobs as its fourth-quarter earnings tumbled amid a collapse in oil prices. Shell earlier this month said it was considering reducing its staff numbers by that amount.
Credit Suisse's shares dropped nearly 8% on Thursday while Royal Dutch Shell's were trading about 3.6% higher.
Oil prices were higher. Benchmark U.S. crude added 54 cents, or 1.7%, to $32.82 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, a benchmark for international oil prices, rose 48 cents to $35.52.