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Swiss banking giant slashes more jobs in cost-cutting exercise

Credit Suisse, Switzerland's second-biggest bank, intends to cut more than 5,500 jobs during 2017, said news agencies on Tuesday.

Swiss banking giant slashes more jobs in cost-cutting exercise
File photo: Fabrice Coffrini/AFP
That's a continuation of the cost-cutting policy that saw the bank slash over 7,200 jobs last year in an attempt to reduce its fixed operating base cost. 
 
The news came as the bank also said it booked a net loss of 2.4 billion Swiss francs (2.2 billion euros, $2.3 billion) in 2016, after agreeing to a massive settlement with the US authorities last month over its role in the so-called sub-prime crisis in 2008.
   
Credit Suisse said in a statement that its net loss was narrower than a year-earlier figure of 2.9 million Swiss francs.
   
“2016 was the first full year of implementing our new strategy and it was a challenging and busy 12 months,” said chief executive Tidjane Thiam.
   
“We have significantly reduced our fixed operating cost base and increased our operating leverage.”
   
Last month, the US authorities announced a $5.28 billion settlement with Credit Suisse over its role in the sale of the kind of toxic securities that led to the global financial crisis of 2008.
   
Federal prosecutors say Credit Suisse has admitted that between 2005 and 2007 it knowingly deceived investors in the sale of complex securities derived from residential mortgages.
   
The system-wide failure of such securities in 2008 caused a cascading wave of bankruptcies and crises that touched off the Great Recession, which cost tens of millions of jobs around the world.
   
“We have reached an agreement with the US Department of Justice on the … matter, thus removing a major source of uncertainty for our future,” CEO Thiam said on Tuesday.
   
With the bank's US case resolved, Thiam can redouble attention on a reform drive he laid out after taking charge of Credit Suisse following a stint leading insurance giant Prudential.
   
Thiam wants the bank to focus more on wealth management and de-emphasize its riskier investment banking operation.
   
He has also prioritised cost cutting, trimming more than 7,000 jobs mostly in New York and London over the last year, while eyeing ways to boost capital.
   
Much attention has been focused on tentative plans for an initial public offering for its Swiss unit.
   
Thiam on Tuesday told the Bloomberg news agency that the Swiss IPO was “a good option” but cautioned that other scenarios were “continuously” being looked at to improve Credit Suisse's capital.
   
On the Swiss stock exchange, Credit Suisse shares were outperforming the overall market, showing a gain of 2.7 percent to 15.16 Swiss francs, while the blue-chip SMI index was little changed.

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What are the best ways to search for your next job in Switzerland?

Looking for a new job in Switzerland? We've put together some tips on where to search for that new role.

What are the best ways to search for your next job in Switzerland?

The good news is that, as a country that serves as a world centre of finance, pharmaceuticals, and research, Switzerland offers an environment very friendly to English speakers. Unlike some European countries, hiring is a flexible and open process. 

That said, some hints will help you in your Swiss job search. 

Know where to look 

Before beginning your job search, knowing where most of your industry’s jobs are is essential. 

As The Local Switzerland has previously discussed, Zurich is Switzerland’s financial capital, whereas most pharmaceutical players are based in Basel. 

The life sciences are concentrated in ‘Health Valley’, stretching from Geneva to Montreaux. 

Geneva, Zurich, Lausanne, Bern, Basel, and St Gallen also have large universities that employ many researchers from abroad. 

Knowing where jobs are based will allow you to concentrate your search, and give you the time to more fully research and understand the needs of particular companies.

READ MORE: Where are the jobs in Switzerland for English speakers?

Develop your Xing as well as your LinkedIn profile

Most job seekers within professional working environments will have a LinkedIn profile to share with prospective employers. 

Xing is also a significant player in Switzerland, Germany, and Austria, and it’s normal for German-speaking professionals to have an accompanying profile on that platform. 

Developing your presence on Xing can demonstrate that you are gaining a greater understanding of the Swiss working environment and establishing yourself as a long-term investment. 

READ MORE: Can you find a job in Zurich if you don’t speak German?

Use specialised job boards 

While many of the big job boards operate in Switzerland—Indeed and Monster, for example—several job boards focus on Swiss jobs specifically or service a key segment of the job market. 

Jobs.ch, jobup.ch, and Jobscout24 are popular sites within Switzerland and are often the first port of call for job seekers. Each has an English version and a user-friendly interface.

Several specialist job boards exist for specialised roles, such as those in the IT or medical research sectors.

Using a profession-based job board allows employers to draw from a more concentrated talent pool while offering job seekers a more significant opportunity to showcase their knowledge and skills. 

SwissDevJobs.ch is a popular destination for IT professionals, whereas Praxisstellen.ch specialises in pharmaceutical and medical research jobs. SwissTopJobs.ch is an excellent place to look for C-suite jobs in the finance and banking sectors. 

Networking is essential 

While there is often a perception that job hunting in Switzerland is very process-oriented, you may be surprised to learn that many positions are filled via word of mouth. 

Suppose you have friends or former colleagues already found a position within a Swiss firm. In that case, asking what positions are opening and whether you could apply is not unreasonable or rude. 

Word of mouth and hiring through connections are common in the Swiss IT field, but they are also common within several other industries, particularly among startups. 

Read More: Where are Switzerland’s biggest international companies?

Use your initiative 

You may also be surprised to hear that simply applying to a firm with your resume isn’t looked down upon in Switzerland (or the German-speaking world). 

This is known as an Initiativbewerbung (or simply ‘application on the initiative’), and employers often regard it very favourably.

To make an Initiativbewerbung, you’ll need your Anschreiben or lettre de motivation (cover letter), Lebenslauf or resume (curriculum vitae or CV), testimonials from other employers, and copies of any relevant certificates or qualifications. 

When naming these files, remember to use the German terms—it will help when they are searched for later!

It’s worth taking the time to identify and address your application directly to the head or manager of the particular department you’re looking to work within. This will create a stronger impression, and there’s less chance of losing it in the daily flow of emails and information. 

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