After wrapping up its acquisition of Credit Suisse, UBS will reduce its employees by 20 percent to 30 percent, eliminating up to 36,000 employees globally, according to a senior UBS manager quoted in the SonntagsZeitung.
According to the Swiss publication, up to 11,000 workers in Switzerland would be laid off. By the end of the previous year, the two lenders collectively employed approximately 125,000 people, with about 3 percent of the overall working in Switzerland.
The anticipated layoffs surpass the 9,000 job losses that Credit Suisse disclosed before UBS’s steady for the past month rescue of the company. Given the significant similarities between the two former competitors, a multiple of that amount of job cuts had been anticipated as the ultimate total.
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An inquiry for comment made by phone outside of regular business hours was not immediately answered by UBS.
UBS has publicly stated that it will be as transparent as it can on job cutbacks. Even though it was obvious that there would be large job cuts, the lender considers talent retention to be an important execution risk for the acquisition.
Firms like Deutsche Bank, Citigroup, & JP Morgan Chase are preparing to hire some wealth managers as well as investment bankers who are certain to lose their jobs.
Credit Suisse bankers looking for work have already descended onto headhunters in droves.
The Swiss administration introduced the 3.3 billion USD emergency purchase of Credit Suisse by its own greater Swiss rival on March 19 following five days of negotiations facilitated by officials.
As per Switzerland’s minister of finance, Credit Suisse had enormous asset outflows as a consequence of several scandals, which could have caused it to implode the coming Monday if no measures were taken.
To force the purchase without needing to get necessary approvals from shareholders, the authorities used emergency law. Hence, even if many irate voices are anticipated at the two institutions’ annual general assemblies, which are this week, the impact on shareholders will be Hence, even if many irate voices are anticipated at the two institutions’ annual general assemblies, which are this week, the impact on shareholders will be minimal.
Major shareholder and Norway sovereign wealth fund, has declared it will not support the re-election of numerous Credit Suisse directors which includes chairman Axel Lehmann.
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The report states that because of the intricate, protracted process required to merge the banks, it is anticipated to be one of the most profitable contracts for providing financial services advice at times.
Comment requests made outside of business hours were not answered immediately by UBS, BCG, Bain, McKinsey, or Oliver Wyman.
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