UBS to cut 35,000 jobs after Credit Suisse rescue: report

June 28, 2023 | 15:00

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Swiss banking group UBS plans to cut 35,000 jobs at Credit Suisse - more than half its workforce - as part of the emergency rescue takeover of its rival in March, according to a report by Bloomberg News on Tuesday.

UBS to cut 35,000 jobs after Credit Suisse rescue: report

A branch of UBS Bank in Zurich, Switzerland. (Source: VNA)

Credit Suisse had a staff of around 45,000 before it nearly collapsed on investor fears about its solvency, which prompted a massive bailout orchestrated by the Swiss government.

Analysts had warned that huge job losses were likely because of the overlapping activities at two of the world's most important banks.

UBS declined to comment on the reported job cuts when contacted by AFP.

Combined, the two groups had around 120,000 employees at the end of last year, with 37,000 of them in Switzerland.

The Bloomberg report, citing sources close to the companies, said employees had been told of three coming waves of jobs cuts this year -- the first at end-July, the others in September and October.

UBS chief executive Sergio Ermotti had warned earlier this month that the coming months were likely to be "bumpy", saying the merger would require "waves" of difficult decisions, particularly regarding employment.

Credit Suisse to pay $495 mn in US to settle securities case

Credit Suisse said Monday it would pay $495 million to settle a row over mortgage-backed securities dating back to the 2008 financial crisis.

Learning the key bank crisis lessons

Just over a month ago, the global banking system was shocked by the failure of Silicon Valley Bank (SVB) and the ensuing wave of panic, which was disastrous for Signature Bank, a New York City lender. The turbulence soon spread to Europe, where Credit Suisse came to the brink of collapse and was eventually forced to merge with large Swiss bank UBS.

By AFP

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