After finalising the merger of Credit Suisse into UBS, the latter recently revealed that it was going to completely absorb Credit Suisse’s 100 year -old Swiss division. This will involve axing about 3,000 jobs across the country. This is part of its redressal strategy for Credit Suisse, which was taken over by UBS in March 2023.
It was announced in June 2023 that the first of three rounds of layoffs would see some employees of Credit Suisse in London, New York and parts of Asia losing their jobs in July 2023, and that the job cuts would be carried out in three rounds, starting July and concluding in October 2023.
Post merger, UBS had said the two banks would keep operating separately till the formal and legal integration takes place in 2024, and the clients are slowly shifted to the UBS systems by 2025.
In the second quarter, UBS made a significant net profit of $29.2 billion, despite the complexities of the takeover, while Credit Suisse faced a $10.1 billion loss in the second quarter.
The integration of the domestic unit of Credit Suisse into UBS will render at least one thousand posts redundant. In addition, the overall restructuring following the merger will lead to at least 2,000 more posts being made redundant in the next few years.
The Bank remains confident that given the positive employment conditions in Switzerland, the impacted employees will be able to land alternative jobs.
Earlier this month, UBS had admitted that it could do without the financial aid that the Swiss government had offered to help with the takeover.