Credit Suisse yesterday became the latest bank to cut jobs in the wake of the global credit crunch when the Swiss bank shed 150 employees working on mortgage-backed securities.

The jobs to go are mainly in New York, with a few lost in London, according to Credit Suisse insiders. In a statement, the bank said: “In line with the current environment and outlook, we have made targeted reductions.”

Mortgage-related investments have been among the hardest-hit areas of business after the collapse of the sub-prime market in the United States. As defaults rose on mortgages given to people with poor credit histories, investors shied away from securities backed by packaged-up mortgages.

An analyst said that he expected further job losses in rival banks. “It is natural for anyone in that business to think about what the scale is going to be going forward,” he said.

“With this level of activity, staff cuts are inevitable.”

Analysts suggested that Deutsche Bank could be the next institution to make job cuts. It is due to write down loans worth as much as €1.7 billion (£1.2 billion) at its third-quarter results next month.

It is estimated that at least 50,000 jobs have been cut in the mortgage industry since the credit crisis began this year.

This month two of America’s most prominent lenders announced huge cuts to their payrolls. Countrywide Financial said that it would make redundant as many as 12,000 workers – a fifth of its staff – and IndyMac Bancorp, cut 1,000 employees, a tenth of its workforce.

Merrill Lynch said last week that there would be job cuts at its First Franklin Financial loan operations, which it bought just less than a year ago. The bank did not spell out the number of job losses.

Job cuts

150 Credit Suisse
12,000 Countrywide
10,000 IndyMac Bancorp
750 HSBC
2,050 Lehman Bros
100 UBS

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