Dozens of Hong Kong staff at Credit Suisse First Boston (CSFB) can expect a severance package soon, based on global restructuring plans announced yesterday.
After reporting an expected US$120 million third-quarter loss, CSFB said it would cut staff by 7 per cent or 2,000 out of 27,500 people worldwide. In some divisions, such as investment banking, cuts could expand to 20 per cent, according to earlier reports citing CSFB sources.
A group spokesman in Hong Kong said despite the broad target, divisional and geographic breakdowns had not yet been finalised. Hong Kong staff members said they expected to be told soon.
CSFB employs nearly 600 in Hong Kong and 2,800 in the region. Last month, it was dumped from the syndicate for China Unicom's multibillion-dollar pending share offering because it upset Beijing by having senior Taiwan officials at seminars in Hong Kong and Europe.
For these reasons analysts said its investment banking unit and China-focused operations would face a bigger hit.