UBS could cut tens of thousands of jobs following Credit Suisse takeover
UBS may cut as much as a third of its workforce following its takeover of Credit Suisse, Swiss newspaper Tages-Anzeiger reported this weekend, as the bank considers its options for delivering the deal.
At the end of 2022, the bank employed around 125,000 people, where approximately 30 per cent of those were based in Switzerland.
However, according to the report, some 30,000 jobs could be at risk, as the two banks have significant overlap in their workforce.
Citing unnamed senior managers, the Swiss daily reported that as many as 11,000 employees could be laid off in Switzerland.
UBS Chair Colm Kelleher has previously signalled his intention to “downsize” Credit Suisse’s investment banking business, which has been the source of much of its scandal.
Credit Suisse was already undergoing an extensive round of job cuts, aiming to reduce its head count by as much as 9,000.
Separately, it was reported that UBS is set to bring in management consultants to handle integration of Credit Suisse.
According to the Financial Times, the firms that UBS has short-listed for the lucrative work are: Bain, BCG, McKinsey and Oliver Wyman. McKinsey has previously worked with UBS when Hamers was chief executive.
News of the job cuts and consultancy shortlist come after UBS’ short-lived chief executive, Ralph Hamers, was replaced by his predecessor Sergio Ermotti last week.
Ermotti ran UBS for nine years, turning it around after the financial crisis and reducing its dependence on investment banking.
Talking about the decision at the time, Kelleher said “we felt we had a better horse”. UBS will bring in management consultants to help manage the acquisition.
UBS, which will host its AGM on Wednesday, wasn’t immediately available to comment.