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UBS plans to cut jobs after taking over Credit Suisse
UBS share in red: UBS is reportedly planning five waves of layoffs. Discover the background to the planned job cuts at UBS and stay informed about the latest developments. #UBS #layoffs #bank merger #financial news
UBS plans to cut jobs after taking over Credit Suisse
According to reports in the Schweizer Sonntagszeitung, the Swiss bank UBS is planning to cut jobs in five phased waves of layoffs in order to save around $6 billion in personnel costs through the integration of Credit Suisse. Analysts estimate that UBS could cut between 30,000 and 35,000 jobs this year as a result of its takeover of Credit Suisse. UBS has previously initiated several rounds of layoffs, including firing executives at its investment bank in January. The bank plans to save a total of $13 billion in costs over the next two years as a result of the acquisition, with about half of the savings coming from employees.
UBS has also taken measures to retain key Credit Suisse employees, particularly in investment banking. The bank added 200 senior managers here after the takeover. In addition, retention bonuses amounting to around $736 million were issued until 2023 to retain key employees. Other competitors such as Citigroup, Deutsche Bank and Santander have also hired numerous executives in the past year. The Sunday newspaper reports five rounds of planned layoffs in June, August, September, October and November, which could affect “50 to 60 percent” of Credit Suisse employees.
The UBS share ultimately lost 1.21 percent to 25.39 francs in Swiss trading. The bank is therefore planning massive structural changes to improve efficiency and realize synergies from the takeover of Credit Suisse.