Credit Suisse yesterday said it had lost a net SFr3bn (£1.7bn) in the two months to the end of November and would axe about 11% of its workforce, principally in investment banking.

The lay-offs comprise 5,300 internal jobs and a further 1,400 with contractors in support functions, such as information technology. The 'vast majority' will be shed by the end of June.

About 3,500 of the jobs will be in investment banking, mainly in New York and London. Earlier this week, the bank said it was cutting 650 positions in the UK, chiefly in investment banking, which were included in yesterday’s total.

The cuts come as investment banks around the world are slashing costs to adjust to falling markets and a gloomy 2009.

Financial Times