The head of Credit Suisse Financial Services, Thomas Wellauer, has ruled out further redundancies following last week's announcement of 500 job cuts.

In an interview with the Swiss newspaper, "SonntagsZeitung", Wellauer denied the banking group had any plans to make further cuts in the size of its workforce.

"The future is always uncertain," Wellauer said, "but for the moment I don't see any reason for further cuts."

Switzerland's second biggest financial institution announced on June 12 that its Financial Services arm would cut 500 jobs in a bid to reduce retail banking costs.

The cuts are in addition to the 700 to 800 reductions announced by Credit Suisse last year.

Natural wastage

The bank indicated that the staff reductions would mainly affect support functions and would be achieved through natural wastage by the end of 2003.

The cuts are the last step in the bank's restructuring, which has seen its retail and private banking arms brought under the umbrella of financial services.

Wellauer confirmed it was his intention to draw a clearer line between retail banking and its high-margin private banking business.

"We are making a very clear distinction between private and retail banking," commented the 47-year-old CEO, "and are also removing one level of hierarchy. This will all be worth it in the long run."

swissinfo with agencies

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