UBS’s Acquisition of Credit Suisse: Massive Job Cuts – Impact on Global Employment

2023-06-27 21:21:21

– UBS will cut 35,000 jobs with the acquisition of Credit Suisse

The two banking giants had around 120,000 employees worldwide at the end of 2022, including 37,000 in Switzerland. UBS intends to reduce this total workforce by around 30%.

Posted today at 11:21 p.m.

Employees at Credit Suisse’s investment bank in London, New York and parts of Asia are expected to be hardest hit by the cuts. (Pretext image)

AFP

The Swiss banking giant UBS is preparing to cut 35,000 jobs in the coming months with the acquisition of its former rival Credit Suisse, Bloomberg reported on Tuesday. This figure represents more than half of the 45,000 employees of Credit Suisse. Asked by AFP, UBS declined to comment on this.

On March 19, UBS agreed to buy Credit Suisse under pressure from the authorities for 3 billion Swiss francs. The crisis of confidence, following a series of scandals and virulent criticism of risk management, had pushed Credit Suisse to the brink of bankruptcy.

At the end of 2022, the two Swiss banking giants had around 120,000 employees worldwide, including 37,000 in Switzerland. According to Bloomberg, which cites two sources familiar with the matter, UBS intends to reduce this total combined workforce by around 30%, or 35,000 people.

three waves

The agency says, citing those same sources, that employees have been told they should expect three waves of job cuts this year, with the first scheduled for the end of July. The other two would follow in September and October. Employees at Credit Suisse’s investment bank in London, New York and parts of Asia are expected to be hardest hit by the cuts.

The fact that the forced takeover of Credit Suisse by UBS leads to job cuts is not new. Employment will be “the most difficult wheel” of integration, UBS boss Sergio Ermotti recently said at the Swiss Economic Forum, a conference that brings together Swiss companies in Interlaken. He felt, however, that job cuts were inevitable if only because of the duplication in some of the activities of the two banks.

AFP

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