SWITZERLAND – Swiss bank Credit Suisse Group is to cut around 350 jobs at its pensions and insurance division Winterthur in a revamp that will see current pensions head Markus Dennier reassigned within Credit Suisse.

The job cuts at Winterthur come as part of a total 1,250 job cuts announced today by the bank, which also reported a loss of 3.3 billion Swiss francs (2.26 billion euros) for 2002.

Credit Suisse said it would “streamline” the central management at Winterthur, aiming for a “significant increase in efficiency”. Winterthur’s Insurance and Life & Pensions divisions will be brought together under a joint management structure headed by Winterhur’s chief executive Leonhard Fischer. It would have a single executive board.

The current chief executive of Winterthur Life & Pensions, Markus Dennler, is to take on “new responsibilities” within Credit Suisse. Winterthur Insurance chief executive Manfred Broska will retire.

“The new organizational framework and the measures already initiated will provide Winterthur with a solid basis from which to increase its profitability and strengthen its position in the insurance market,” the company said in a statement.

It would combine the Insurance and Life & Pensions divisions within Germany, Italy, Spain and Belgium. In Switzerland and the UK, life and non-life insurance would continue to be managed separately

Credit Suisse added: “Winterthur aims to have a business model targeting sustainable profitability for each of its markets. In markets where this is not possible, the respective companies will be sold.”

The group will also cut 900 jobs in private and consumer banking, taking the total job cuts announced today to 1,250.

The Zurich-based company's net loss grew to 950 million Swiss francs in the fourth quarter from 830 million francs in the year-earlier period. It reported a 3.3 billion franc full-year loss for 2002, though it said it expects to return to profit in 2003.

Credit Suisse, via its Credit Suisse Asset Management arm, controls 84.8 billion euros in European pension fund investments.

Topics