(Bloomberg) -- Credit Suisse Group AG is cutting at least a third of its debt sales positions globally as part of a restructuring that will eliminate thousands of jobs and a new strategy that drastically downsizes its investment banking and trading business, according to two people familiar with the bank’s plans.

The Swiss lender is reducing headcount in its debt syndicate division, which prices bond deals, as it slims down its so-called flow business, the people said. One of the people said that the brunt of the cuts will be in Europe, where Credit Suisse has a strong franchise in managing corporate bond sales and leveraged finance. 

The flow business refers to run-of-the-mill investment banking activities such as selling and trading bonds. A Credit Suisse spokesperson declined to comment, but referenced a press release sent in October on job cuts.

Credit Suisse is undertaking a sweeping overhaul of its business following years of scandals and management missteps. The new strategy includes plans to spin out its capital markets, advisory and leveraged finance businesses into a boutique unit under the CS First Boston branding, while integrating its remaining trading businesses more closely with the wealth management business.

The Zurich-based bank plans to reduce costs by cutting 2,700 jobs this year and 9,000 jobs by the end of 2025. It is also in the process of completing a roughly 4 billion Swiss franc ($4.3 billion) capital raise to fund the restructuring, and has warned that it will face a loss of up to 1.5 billion Swiss francs for the three final months of the year.

--With assistance from Marion Halftermeyer.

©2022 Bloomberg L.P.