Credit Suisse’s investment bank was today bracing for the worst of 2,000 job cuts as the group confirmed it would reduce headcount. The investment bank fell below expectations as sovereign debt concerns and poor trading conditions hammered fixed-income revenues.

The Swiss bank had been expected to announce headcount reduction plans. It follows domestic rival UBS and other banks including Goldman Sachs in taking steps to cut staff in the face of tough market conditions and lower profitability.