UBS’s Merger with Credit Suisse May Lead to Tens of Thousands of Job Losses

UBS’s acquisition of Credit Suisse, Switzerland’s second-largest bank, could result in job losses of tens of thousands, according to an anonymous source cited in the Financial Times. The cuts are expected to impact a third of the 120,000 people employed across both banks, with Credit Suisse’s internal business and investment operations bearing the brunt. The bank currently employs around 30,000 people in these areas. The source claims that 17,000 investment bankers are at risk of losing their jobs as a result of the merger.

Credit Suisse management has instructed employees to continue working as usual for the time being and promised that they will receive the pay they were expecting, according to an internal memo. The bank has also said that it is prepared to pay employees for the rest of 2023 while the merger is completed.

UBS, which employs more than 74,000 people globally, plans to reduce jobs in Switzerland in line with Credit Suisse, close branches, and cut administrative positions. Credit Suisse employed around 102,000 people at the end of 2022, with this figure falling by 4,000 at the start of 2023.

The Swiss Federal Council has approved the acquisition of Credit Suisse by UBS, which is valued at $3.24bn and has provided guarantees to the country’s national regulator to ensure that Credit Suisse has sufficient liquidity. This follows Credit Suisse’s admission of weaknesses in internal controls, which were outlined in a recent report.

The merger of the two banks will result in the creation of the world’s largest wealth manager, managing over $3.3tn in assets. The deal has been welcomed by Swiss business leaders and government officials, who have said that it will strengthen the country’s position as a financial hub. The merger is expected to be completed in early 2024.