Layoffs Continue! UBS To Cut Credit Suisse Workforce by More Than Half, Almost 35,000 Employees To Lose Jobs, Says Report
UBS purchased Credit Suisse in a fire sale. Now, it plans to gut the struggling bank by reducing its workforce by more than half.
Mumbai, June 28: As per a recent Bloomberg report, UBS Group is planning to start a round of massive layoffs at Credit Suisse next month. It plans to cut the workforce by more than half.
The new round of layoffs will affect around 35000 employees. This will include bankers, traders and support employees in London, New York, and Asia. Layoffs in Meta: Facebook Parent To Begin Another Round of Mass Sackings This Week, 4,000 High-Skilled Employees To Be Laid Off.
The new layoffs are said to save UBS almost USD 6 billion in staff costs. These will be completed in three rounds. While the first round is expected next month, two more rounds might be done in September and October.
UBS took over Credit Suisse in an emergency deal. After closing this deal, the bank's combined workforce jumped to about 120,000. However, UBS hopes to retain the majority of Credit Suisse’s private bankers,
The UBS CEO Sergio Ermotti recently stated that the integration was going “very well" and changes to the third level of management will be made within the next 20 days.
Originally, UBS planned to keep the top 20% of dealmakers at Credit Suisse’s loss-making investment bank. However, most of these have already been poached by competitors like Deutsche Bank AG, Jefferies Financial Group Inc. and Wells Fargo & Co.
The Swiss domestic business will be integrated into UBS' Swiss unit. However, it might also be spun off or listed publicly as well. Amazon Layoffs: E-Commerce Giant To Reduce Employee Stock Awards in 2025 After Mass Sacking.
Credit Suisse’s loss-making investment bank lost USD 5.5 billion in the Archegos Capital Management scandal in 2021.
(The above story first appeared on LatestLY on Jun 28, 2023 08:54 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).