Swiss banking group UBS is looking to lay off 35,000 employees or over 50 per cent of workforce at Credit Suisse, as part of the emergency rescue acquisition of its rival in March, according to a report by Bloomberg News on Tuesday.
UBS plans to eventually reduce the total combined workforce by around 30 per cent or 35,000 people, with the headcount at Credit Suisse currently at around 45,000
Swiss banking group UBS is looking to lay off 35,000 employees or over 50 per cent of workforce at Credit Suisse, as part of the emergency rescue acquisition of its rival in March, according to a report by Bloomberg News on Tuesday.
Bankers, traders, and support staff in Credit Suisse’s investment bank in London, New York and Asia are likely to be impacted, with almost all activities at risk, the report said.
UBS plans to eventually reduce the total combined workforce by around 30 per cent or 35,000 people, with the headcount at Credit Suisse currently at around 45,000.
Analysts had warned of massive job cuts because of the overlapping of activities at two of the world’s biggest banking firms. As many as 10,000 jobs would be impacted if the Swiss domestic businesses of the two banks are merged.
After UBS acquired Credit Suisse in an emergency deal, the two banks had a combined workforce of around 120,000 employees at the end of last year, with 37,000 of them in Switzerland. UBS is likely to retain the majority of Credit Suisse’s private bankers.
According to the Bloomberg report, employees had been informed of three coming series of jobs cuts this year – the first at the July end, September and October.
Earlier this month, UBS CEO Sergio Ermotti warned that the coming months are expected to be “bumpy”, adding the merger would need several tough decisions, particularly regarding employment.
According to a Reuters report last week, UBS will slash Asia investment banking jobs at Credit Suisse next month, with a significant reduction in investment bankers covering Australia and China.