UBS may cut 30% of its jobs after acquiring Credit Suisse
Swiss press reports said, quoting a senior manager at UBS, that the entity resulting from the bank’s acquisition of Credit Suisse will reduce the workforce by about 20 to 30%.
UBS agreed to buy rival Credit Suisse for 3 billion Swiss francs, the equivalent of $3.3 billion, in a deal orchestrated by the Swiss government, central bank and market regulator to avert a collapse in the country’s financial system.
But the deal, which also aims to help secure global financial stability, has raised concerns about the size of the new bank, which will have $1.6 trillion in assets and more than 120,000 employees worldwide.
The newspaper report stated that the bank may cut 11,000 jobs in Switzerland.
Jobs in the bank’s investment banking unit in the United States will also be affected, the report said, adding that UBS intends to hold talks to cancel a deal that would have given banker Michael Klein control of most of Credit Suisse’s investment unit.