Credit Suisse First Boston will fire another 2,000 bankers and launch a wholesale cost-reduction programme in an effort to save $1bn (€1.1bn) a year.

The news of the latest redundancies, which represent around 7% of CSFB's global headcount, came as CSFB warned that it would report an operating loss of $120m in the third quarter on the back of lower activity. It takes the total redundancies at CSFB to over 5,500 since it bought Donaldson, Lufkin & Jenrette last year.