According to recent reports, UBS Group AG is planning to cut its workforce by at least 30 percent worldwide following the completion of its takeover of Credit Suisse Group AG. An unidentified senior manager from UBS confirmed this to the Swiss newspaper SonntagsZeitung, but the official spokesperson denied any layoffs.
However, the sources suggest that up to 11,000 employees may be laid off in Switzerland and 25,000 worldwide, who work under UBS Group AG after the Credit Suisse Group AG merger.
The ongoing layoff spree may continue with the merger of UBS and Credit Suisse, and reports suggest that around 36,000 jobs may be cut as a result of the takeover. The Swiss government arranged the takeover of Credit Suisse by UBS to avoid a global financial crisis. The merger was organised in response to fears following the collapse of banks in the United States.
The Swiss newspaper SonntagsZeitung reported that there are discussions among the management regarding a reduction of 20 to 30 percent of the workforce. As per the report, approximately 25,000 to 36,000 jobs might be cut, out of which 11,000 will be in Switzerland. The positions that will be impacted are not yet known.
UBS and Credit Suisse are among the biggest banks in Switzerland, and both are considered globally systemically important financial institutions. This means they are deemed too big to fail. Credit Suisse has been embroiled in a series of scandals over the past few years, leading to a decline in investor confidence.
On March 15, Credit Suisse’s financial shares fell following two bank failures in the United States. Moreover, the bank has been implicated in a bribery scandal in Mozambique and a money laundering case linked to a Bulgarian cocaine network. The finalisation of the bank merger is expected to see a spurt in layoffs and the cutting down of 36,000 jobs.
While the official spokesperson from UBS has denied these reports, sources suggest that the bank will cut its workforce by at least 30% worldwide following the takeover of Credit Suisse. This news has further fueled concerns over the job market, as up to 36,000 jobs may be at risk, particularly in Switzerland. The financial sector is always subject to change and turbulence, and the ongoing scandals have led to investor and public concern.
