Up to 30 percent of the jobs will be cut at UBS-Credit-Suisse
Ztwo weeks after the emergency takeover of Credit Suisse by the UBS a Swiss newspaper, citing business circles, estimates that job cuts may be imminent. Between 20 and 30 percent of the jobs at the combined UBS-CS should be eliminated, reported the “Tages-Anzeiger” on Sunday, citing a high-ranking UBS manager. In Switzerland alone, up to around 11,000 jobs could be cut, the newspaper reported. But many jobs would also be lost in US investment banking, which is to be shut down. But this also applies to all other sectors.
Together more than 120,000 employees
The question of how many employees will be laid off quickly arose when the spectacular news was officially announced that UBS was the CreditSuisse (CS) takes over. For many employees, the takeover is a nightmare.
Together come UBS and CS to 124,500 employees. In the end, up to 25,000 jobs could be lost, whether through layoffs and early retirement or through the sale of businesses. This figure can indirectly be derived from the $8 billion in cost reductions that UBS aims to achieve by 2027. The majority of this is attributable to the reduction in personnel costs.
Significant reductions in area
Most recently, Ralph Hamers, the CEO of UBS, said that there were also opportunities for growth. Together with UBS, the 50,000 employees of Credit Suisse would also have a new future. “Together we can build an even more beautiful bank.” This sentence should sound like mockery to the ears of CS employees, especially if they are in the Switzerland work.
Because in the home market of the two big banks, their overlaps are greatest. Credit Suisse has 17,000 employees in the Confederation, UBS 22,000. According to estimates, it is conceivable that 10,000 to 12,000 jobs will be cut, although the union and works council will certainly insist on extending the cuts over as long a period as possible.
Significant staff cuts are to be expected across the board. Because there are both UBS and CS branches in 72 Swiss cities; a double presence will not be worthwhile in many cases. On the other hand, many duplicate functions in central administration and IT will be eliminated from now on. Client advisors in wealth management need to worry least. They should keep their previous clients as loyal as possible, now for the good of UBS.
