UBS Group AG will reduce its workforce by 20-30 per cent after finishing its takeover of Credit score Suisse Group AG, slashing as many as 36,000 jobs worldwide, Swiss newspaper Sonntagszeitung reported, citing a senior supervisor at UBS.
In Switzerland, as many as 11,000 staff will probably be laid off, the newspaper mentioned on Sunday. The 2 lenders collectively employed virtually 125,000 individuals on the finish of final 12 months, with about 30 per cent of the overall in Switzerland.
That variety of predicted layoffs dwarfs the 9,000 job cuts that Credit score Suisse had introduced earlier than the rescue by UBS final month. Provided that the merger creates important overlaps, it had been anticipated that last layoffs would attain a a number of of that quantity.
UBS didn’t instantly reply to a name outdoors of regular enterprise hours looking for remark.
The takeover by UBS of Credit score Suisse was unexpectedly organized by the Swiss authorities on March 19 to forestall a world monetary meltdown, following fears of contagion from the collapse of banks within the US.
UBS introduced on Wednesday it might convey again former chief government Sergio Ermotti to deal with the massive dangers concerned within the Swiss banking large’s controversial absorption of its troubled rival Credit score Suisse.
UBS chairman Colm Kelleher mentioned this week: “There’s an enormous quantity of threat in integrating these companies.”
Credit score Suisse was embroiled in a collection of scandals within the years main as much as a March 15 share value collapse, when investor confidence plunged following two financial institution failures within the US.
Amongst these was the chapter of the British monetary firm Greensill and the implosion of the US hedge fund Archegos.
It was additionally caught up in a bribery scandal in Mozambique involving loans to state-owned corporations and was fined $2 million in a cash laundering case linked to a Bulgarian cocaine community.
With inputs from Bloomberg and AFP