The Swiss investment bank UBS is reportedly preparing to slash more than half of its workforce. It currently stands at 45,000 employees following the acquisition of struggling competitor Credit Suisse. The bank plans to initiate this restructuring as early as next month.
Insiders familiar with the matter have indicated that approximately 30,000 to 35,000 employees may depart from the combined organization throughout this year. According to Bloomberg News, the workforce decrease will take place across three phases. It will be starting in July.
Credit Suisse is expected to absorb the majority of the layoffs. It is because it plans to eliminate over 25,000 positions held by workers before the acquisition.
The prospect of the huge job losses is a further blow to the City of London after rivals Morgan Stanley and Goldman Sachs announced a reduction in staff numbers earlier this year.
Credit Suisse Offices
Swiss investment bank UBS is set to focus on safeguarding its operations in Switzerland. As a result, the capital’s Credit Suisse offices will be among the hardest hit. The report suggests that senior executives, traders, and numerous support staff in New York and certain regions of Asia will also receive notifications of their redundant positions.
UBS has previously stressed that the bank is keen to reduce costs overall and has not set a target for a reduction in the workforce. It reluctantly agreed to buy Credit Suisse in a deal thrashed out with the Swiss government and local regulators in March, after the rival bank came close to bankruptcy.
Analysts had predicted that the merger would incur costs of $17 billion (£13.4 billion). However, analysts believe that UBS acquired a portfolio of assets worth $35 billion.
It is from Credit Suisse Following the takeover, the combined workforce expanded to 120,000 employees.
Shares of UBS rose 1.4% at the open on Wednesday, trading at 17.81 Swiss francs ($19.907) as of 9.05am in Zurich. A spokesperson for UBS declined to comment on the report of job cuts.