Credit Suisse Group (NYSE: CS) is the #2 bank in Switzerland. And, it's getting smaller.

Today, the company announced layoffs of 3,300 jobs (or 11% of the workforce). Something else: some senior executives will say bye-bye to bonuses.

Yes, this action seems late. But, for the most part, it looks like the annual cost savings will amount to 2 billion francs or so.

The big sweet-spot for the cuts is in investment banking (with an emphasis on the US operation). No doubt, this business has evaporated (and investment bankers can be pretty expensive to keep on).

Credit Suisse is also avoiding complex proprietary trading activities, which should help reduce the overall risk levels. Instead, there will be more focus on wealth management, which apparently is doing quite well right now.

Interestingly enough, Credit Suisse hasn't sought out governmental assistance, unlike UBS (NYSE: UBS). Rather, the firm was able to raise 10 billion francs from sovereign wealth funds and the liquidity position looks fine, especially in light of the new cuts.

Besides, Credit Suisse should be more aligned with the current environment, which should help profitability. And investors seem to agree, as the shares increased 5.59% to $24.76 in today's trading.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.