UBS, the Swiss global investment bank, is preparing to undergo major job cuts following its acquisition of Credit Suisse. Sources familiar with the matter have indicated that UBS is looking to streamline its operations and cut costs by eliminating overlapping roles and reducing headcount. This move comes as UBS seeks to strengthen its position in the highly competitive financial services industry and focuses on optimizing its resources to better serve its clients. While the extent of the job cuts is yet to be finalized, the move is expected to have a significant impact on UBS’s workforce, and potentially, the industry as a whole.
According to a senior manager at UBS cited by SonntagsZeitung, the company plans to reduce its workforce by 20-30% following its acquisition of Credit Suisse, potentially leading to the elimination of 36,000 jobs globally. The publication also reported that up to 11,000 employees could be let go in Switzerland, where the two companies currently employ around 30% of their combined workforce. Credit Suisse had previously announced plans to cut 9,000 jobs before being acquired by UBS. Other firms like JPMorgan Chase, Citigroup, and Deutsche Bank may seek to recruit investment bankers and wealth managers who are let go. The emergency takeover of Credit Suisse by UBS was announced by the Swiss government last month following a series of scandals that had led to massive deposit outflows. UBS has not yet provided clarity on job cuts, but has indicated that the retention of talent will be a significant part of the acquisition’s execution risk. Shareholder impact is expected to be limited as the government resorted to emergency law to complete the deal without having to seek shareholder approval. Norges Bank Investment Management, a major shareholder, has stated its intention to vote against the reelection of several Credit Suisse directors. Separately, UBS is considering Bain, Boston Consulting Group, McKinsey, and Oliver Wyman to advise on the integration of Credit Suisse. According to the Financial Times, this is expected to be a highly lucrative contract due to the complex nature of the process.
In conclusion, while UBS prepares for major job cuts after its acquisition of Credit Suisse, the long-term strategy of the bank remains focused on improving its profitability and operational efficiency. While this is undoubtedly a challenging time for those impacted by the layoffs, it is also an opportunity for UBS to streamline its operations and position it for growth in a changing financial landscape. As always, we will continue to monitor the situation and provide updates on any developments.
