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Credit Suisse, Intel, Sharp and Estée Lauder to cut jobs

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Credit Suisse announced on March 23 that it would make cuts in its global markets division, with plans to let go of 2,000 staff.

Half of the 2,000 staff earmarked to go from the division have been notified this week, according to Reuters, and the other 1,000 staff will be informed by the end of the year.

Last week the investment bank jobs after announcing last week 130 staff, of which 80 were in fixed income, currencies and commodities and 50 from equities had been laid off but declined to give a breakdown of the remaining positions to be lost.

The 2000 laid off made was on top of the 4,000 job cuts, most of which are mostly contractors and back-office roles announced in February, bringing the headcount reduction across the group to about 6,000.

In a letter to shareholders with the latest results, Credit Suisse’s CEO Tidjane Thiam and chairman Urs Rohner described the trading cuts as a “painful process” but said they were “convinced that the implementation of disciplined cost savings is a vital step to strengthen Credit Suisse’s resilience and increase our ability to remain profitable through the economic cycle”.

Amidst the job cuts, the bank’s investment banking and capital markets (IBCM) division is growing.

“While the market environment offered very few equity capital market (ECM) opportunities, the IBCM team has worked hard to move increasingly towards M&A and made good progress,” stated the letter to shareholders.

Headcount in the IBCM division was 2,870 at the end of March, its highest since the start of 2013. The bank said: “We continue to make targeted investments in IBCM, including strategic new hires, which are aimed at expanding our client coverage footprint”.

ALSO READ: BNP Paribas reported to axe 40 jobs in Asia

Electronic manufacturer Sharp Corp, which is undergoing management restructuring, is considering a plan to cut up to 3,000 jobs, or about 15% of its workforce in Japan.

The job cuts will likely take place in its poorly-performing solar power business and head office administrative affairs division, The China Post reported.

It is believed that Sharp is considering cutting about 2,000 total jobs in its solar power and the head office administrative affairs divisions, and 1,000 jobs in its photocopier division.

The company will include the job cuts in its business reconstruction programme to be announced as early as this summer. The layoff plans were first reported on May 1 by Japanese The Asahi Shimbun.

In conjunction with each restructuring effort, Sharp has requested the voluntary retirement of employees. In fiscal 2012, about 3,000 employees accepted the request and retired, and in fiscal 2015, about 3,200 did so.

ALSO READ: Nomura cuts 30 jobs in Asia ex-Japan

Estée Lauder estimates it will cut its workforce by 900 to 1,200 positions globally or about 2.5% of its workforce. The cosmetics company anticipates ultimate annual cost savings of about $200 million to $300 million.

“Reallocating resources to new capabilities and higher-growth areas, and lowering our cost base will regrettably include selective workforce reductions in certain areas of the company,” said chief executive Fabrizio Freda in a statement.

“We will make difficult decisions about affected employees with sensitivity, consistent with the values of our company and will make a concerted effort to retrain and redeploy employees wherever possible.”

The restructuring is expected to cost Estée Lauder $600-$700 million in one-time charges. It also plans to retrain and redeploy some employees, in part to invest in new products, social media and digital sales.

ALSO READ: IBM to cut more jobs in Europe

In April, Intel Corporation announced it will be axing 12,000 positions globally as part of a restructuring initiative, the majority of which are expected at its European headquarters in County Kildare.

Most of the layoffs will have a voluntary compensation package. A manufacturing technician who has worked at Intel’s Leixlip plant in Ireland for 11 years told the Irish Independent he was offered a voluntary redundancy package based on five weeks’ pay for every year worked plus two weeks of statutory pay for every year.

But the 35-year-old father-of-two said he will turn it down. “It doesn’t suit me,” he said. “I have two kids. It’s not a good day. Anyone who has been there a long time feels targeted. It hasn’t been handled fairly.”

Similar deals have been offered to Intel’s staff in India, Mint reported. The company is offering a voluntary separation package of 4-months’ salary (depending on the tenure) plus 1-month’s salary for every year spent at the company.

Intel India has close to 7,500 employees. The voluntary separation package has been offered to select employees; many others are being let go.

The company has given employees time till the first week of June to accept or reject the offer. Those who accept the offer will be relieved by June-end.

ALSO READ: Hong Kong Disneyland announces job cuts

Image: Shutterstock



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