ZTwo weeks after the emergency takeover of Credit Suisse by UBS, a Swiss newspaper, citing business circles, estimated that job cuts might be imminent. Between 20 and 30 percent of the jobs of 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 acquiring Credit Suisse (CS). For many employees, the takeover is a nightmare.
Together, UBS and CS have 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.” In the ears of CS employees, this sentence should sound like mockery, especially if they work in Switzerland.
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 be pushing for the cuts to be extended 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.