28-6-2023 (GENEVA) UBS, the Swiss banking group, is set to eliminate a staggering 35,000 positions at Credit Suisse, more than half of the bank’s workforce, as part of the emergency rescue takeover that occurred in March, according to a report by Bloomberg News on Tuesday (Jun 27).
The impact of the job cuts is expected to be felt by bankers, traders, and support staff in Credit Suisse’s investment banks located in London, New York, and certain parts of Asia. The report indicates that virtually all activities are at risk of being affected.
Credit Suisse, on the brink of collapse due to investor concerns about its solvency, underwent a massive bailout orchestrated by the Swiss government. Prior to its crisis, the bank employed approximately 45,000 individuals.
Industry analysts had previously warned that significant job losses were likely due to the overlapping nature of operations between the two prominent global banks.
Both UBS and Credit Suisse have refrained from providing comments on the matter.
Last week, Reuters reported that UBS intends to reduce investment banking jobs in Asia at Credit Suisse starting next month, with a particular focus on downsizing the team of investment bankers covering Australia and China.
Combining the workforces of UBS and Credit Suisse, the two institutions had approximately 120,000 employees as of the end of last year, with 37,000 of them based in Switzerland.
According to sources close to the companies cited in the Bloomberg report, employees have been informed about three waves of job cuts scheduled for this year. The first wave is expected to occur at the end of July, with the subsequent ones in September and October.
UBS CEO Sergio Ermotti had previously cautioned that the forthcoming months would be challenging, acknowledging that the merger would necessitate difficult decisions, particularly concerning employment.
