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CSFB to make bank cuts
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January 17, 2001: 7:34 p.m. ET
Company could reportedly cut up to 250 jobs at investment banking division
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NEW YORK (CNNfn) - Credit Suisse First Boston is following the lead of other Wall Street firms and planning to make cuts to its investment banking division, a person familiar with the situation told CNNfn.com.
CSFB, the New York-based banking unit of Credit Suisse Group, employs about 2,800 professionals. "Cuts are being contemplated in the investment bank," the source said.
CSFB could slash as many as 250 jobs, The Wall Street Journal's online edition reported Wednesday.
CSFB declined to comment.
CSFB's technology division, which is led by Frank Quattrone, could also lose about 8 percent of its work force, The Journal said. Mr. Quattrone could not be reached for comment.
Wall Street cuts
A stock market slowdown coupled with a slowdown in merger activity are causing Wall Street firms to cut down, insiders said.
Prudential Securities announced in December that it was also planning to cut its investment banking unit. New York-based Prudential Securities, a unit of Prudential Insurance Co. of America, employs about 250 investment bankers. The cuts are an attempt by Prudential to focus more on retail brokerage.
At the same time, Bear Stearns also disclosed that it was making chopping nearly 3 percent, or 63 people, from its information technology department which employs 2,200 persons. The cuts are part of a reorganization of the IT department, a company source said.
Press reports indicated Wednesday that J.P. Morgan was also slashing as many as 1,000 positions.
Credit Suisse's decision to cut positions comes at a precarious time for the banking unit. CSFB has lost many high profile executives following its acquisition of Donaldson, Lufkin in Jenrette which it bought in August for $11.5 billion.
In December, 20 CSFB senior bankers jumped to UBS Warburg. The Swiss banking unit also lost Kenneth Moelis, the former co-head of U.S. investment banking at Credit Suisse, who joined UBS where he will be managing director and co-head of U.S. investment banking. 
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