Credit Suisse sells time off to managers in new cost-saving maneuver

Credit Suisse Close Crop
Register now

Credit Suisse Group is offering to sell extra time off to top executives and managers based in Switzerland to give them a personal stake in the bank’s cost saving efforts.

Switzerland’s second-largest bank is recommending higher ranking employees purchase two additional weeks of vacation this year, according to a Credit Suisse spokesman.

“This will allow managers to make a personal contribution to a responsible approach to costs,” the bank said in a statement. Credit Suisse said other employees could also choose to purchase two more weeks of vacation as part of the employee benefits program.

Credit Suisse took provisions of $1 billion to cover the impact of the coronavirus on loans and asset price slump in the first quarter of the year. Chief Executive Officer Thomas Gottstein said that key profit targets and capital levels will be under pressure.

The bank may also look to reduce its workforce. Gottstein said that online banking is becoming more important will lead to a decrease in the importance and number of branches, adding that one of his priorities was to streamline processes, as Bloomberg reported.

Bloomberg News