UBS to cut Credit Suisse staff by more than half after takeover
The Swiss bank reportedly plans to reduce its total combined headcount by 35,000 peopleByAdam Mawardi27 June 2023 • 10:20pm
UBS is expected to lay off more than half of Credit Suisse’s workers from next month following its emergency takeover of the struggling 167-year-old lender.
The Swiss bank is planning on eventually reducing its total combined headcount by 30pc or 35,000 people, Bloomberg reported.
Credit Suisse, which was bought by rival UBS in a government-brokered rescue in March, currently has 45,000 workers.
The £2.6bn takeover was orchestrated by Swiss authorities in March to avoid Credit Suisse failing and causing a wider meltdown in the global banking industry.
Bankers, traders, and support staff across Credit Suisse’s investment bank in London, New York and parts of Asia are expected to be most affected by the layoffs.
Almost all of Credit Suisse’s divisions are at risk as UBS reportedly seeks to save around $6bn (£5bn) in staff costs in the coming years.
The initial rounds of job cuts are expected to exclude those relating to the significant overlap between UBS and Credit Suisse’s operations in Switzerland.
As many as 10,000 roles could be made redundant if both banks decide to merge their domestic Swiss businesses.
UBS’s combined headcount rocketed to 120,000 following the takeover, of which around 30pc are based in Switzerland.
Employees have reportedly been warned to expect three rounds of layoffs this year, with the first beginning at the end of July.
The remaining rounds are said to be planned for September and October.
It comes after UBS chief executive Sergio Ermotti earlier this month warned of “painful” decisions about Credit Suisse job cuts, although did not provide details.
Speaking in Switzerland’s capital, Mr Ermotti said: “We won’t be able to create, short term, job opportunities for everybody. Synergies is part of the story.”
He added: “We need to take a serious look at the cost base of the standalone and combined organisations and create a sustainable outcome.”
According to Mr Ermotti, about 10pc of Credit Suisse employees have left the bank in the past few months.
UBS axed Credit Suisse’s most senior executives earlier this month, with high profile exits including its chief financial officer, general counsel, and co-heads of its investment banks and markets division.
The departures followed UBS’s appointment of 160 leadership positions in the combined bank, with only a fifth handed to Credit Suisse workers.
Credit Suisse declined to comment. UBS was contacted for comment.
