UBS Plans New Layoffs- Report

AG UBS Group More than half of the workforce at the recently acquired Credit Suisse Group AG CS is reportedly facing potential layoffs as part of UBS’s reported plans to significantly reduce headcount.

The anticipated layoffs are a component of UBS’s plan to reduce staffing at Credit Suisse’s loss-making investment bank, which was the cause of a sizable loss in the Archegos Capital Management scandal in 2021. Additionally, the strategy calls for keeping the top 20% of dealmakers, especially those who concentrate on technology, media, and telecoms.

Sergio Ermotti, CEO of UBS, said that the integration is progressing “very well” and expressed his satisfaction with it. Additionally, he disclosed that the next level of management would soon be announced, giving up to 1,500 workers some clarity. Ermotti’s remarks concur with those made in a Bloomberg column that, despite potential difficulties, the integration of Credit Suisse is likely to be smoother than typical bank mergers.

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The majority of Credit Suisse’s private bankers will be kept by UBS as well, especially in the Asia Pacific region. As early as next month, a few private bankers in Singapore plan to move to UBS’s headquarters there. According to news sources, this action is one of the first overt indications that the merger is taking shape.

UBS intends to decide in the third quarter whether it will fully integrate the domestic Swiss business with its own Swiss unit or pursue alternative options like spinning it off or going public. Since politicians and businesses in Switzerland have expressed concern about the combined bank’s potential market power, the future of the Swiss bank has drawn considerable attention.

Overall, it is anticipated that the merger and subsequent layoffs will significantly affect the banking industry, both in Switzerland and internationally. However, the full scope of this impact won’t be apparent until the integration process is finished in the upcoming months.