Credit Suisse, Switzerland’s second-largest bank, today added to the growing tally of job cuts across the world's financial sector by announcing plans to axe 5,300 staff, or 11 per cent of its workforce.

Last night, Nomura revealed that it will cut 1,000 jobs in London, less than three months after taking on the European business of Lehman Brothers, the collapsed Wall Street investment bank.

Most recently, Citigroup, once America's largest bank, said it would cut 52,000 jobs, adding to 23,000 already announced.

Credit Suisse said today that the job losses would help save around SwFr2 billion (£1.1 billion) — or about 9 per cent of its total costs — after it reported a loss of around SwFr3 billion during the fourth quarter so far.

The 5,300 cuts announced today include the 650 redundancies in London announced earlier this week and bring the bank's total job losses for the year to 7,100.

The bank said that the job reductions will be primarily in its investment banking division, which employs 20,000 staff worldwide, and it will take a SwFr900 million charge for making the cuts.

Credit Suisse also said that Brady Dougan, its chief executive, the bank's chairman and the head of investment banking will not receive a bonus for the year.

Mr Dougan said: "The strategic steps we are outlining today will further reinforce the strong position of Credit Suisse from a risk, cost, capital and earnings perspective.

"These actions will better position us to weather the continuing challenging market conditions, capture opportunities that arise amid the continuing disruption, and prosper when markets improve."

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