UBS, Switzerland’s largest investment bank, plans to cut more than half of its workforce at its rival bank Credit Suisse, which recently completed the merger and acquisition process, Bloomberg reported on the 28th (local time), citing industry officials.
According to reports, UBS plans to cut jobs three times in late July, September, and October this year. According to Bloomberg, the number of job cuts will exceed half of the 45,000 CS employees, reaching as many as 35,000 people.
On March 19, UBS signed an acquisition deal with CS, which is in financial crisis due to investment failures and customer exodus. The deal was made with Swiss financial authorities involved to block the spread of the banking crisis.
UBS completed the acquisition process on the 13th after discussing the Swiss federal government’s compensation for operating losses in CS.
As a result, UBS has entered an integrated management system by overseeing CS’s existing businesses, but the massive business restructuring process is expected to continue for many years to come.
Job cuts are also involved in the restructuring process. It is observed that employees in the CS investment sector in London, the UK, New York, and parts of Asia will be a priority for job cuts.
The investment business sector overlaps with UBS’s business sector and is pointed out as one of the sales sectors that has increased CS’s financial risks.
Recently, UBS management has written and presented a so-called “red line” that lists more than 20 prohibited business activities that CS should not do.
It is known that the list includes launching new products without UBS approval or securing new customers in Libya, Russia, Sudan, and Venezuela.
