Credit Suisse which is on the brink of reshuffling its global private banking division, has decided to retrench about 2000 jobs globally by reducing 20% of its staff in India from its wealth management team by the end of 2012, as reported by Reuters.
In the wealth management space, the executive has to earn six times his salary. An executive is allowed to scale up to these levels in a year or two. In case, he fails to do so, he is asked to leave, and before terminating, bank gives 12-24 months' time, depending on its policy.
Slow down and debt problems in Europe and United States have already hit the businesses of most of the Investment Banks worldwide.
After seeing a dip in its earnings, out of almost 60 people in wealth management division of Credit Suisse in India, 14 have been asked to leave the organization, including Puneet Matta, head of the business division.
Last month, Barclays Bank laid off 25-30 people from its client relationship teams at Barclays Corporate and Barclays Capital in India, including Karan Bhagat who was the country head and managing director of Barclays Corporate in India.
HSBC has decided to lay off 30,000 employees globally. The bank, however, said job cuts were unlikely in its India unit.
On Friday, the Wall Street Journal reported Bank of America would cut 3,500 jobs this quarter and may ask another 10,000 to leave the bank if the restructuring continued.