The first of three rounds of layoffs will see some employees of Credit Suisse in London, New York and parts of Asia losing their jobs in July 2023. It is expected that the teams that manage Credit Suisse’s structured loans to rich customers will not lose their jobs just yet.
The bank was bought over by UBS Group a couple of months ago. The acquisition had raised UBS’ headcount to 1,20,000. These job cuts are expected to save UBS about $6 billion over the next few years. Presently, Credit Suisse alone has about 45,000 employees.
The objective is to bring down the combined headcount by 30 per cent. That means, over 30,000 people will be let go by the end of the layoff rounds. The second and third rounds are reportedly expected to take place in September and October.
UBS Group’s Swiss arm is yet to complete 100 per cent integration of Credit Suisse’s domestic business in Switzerland with its own operations. It is not certain whether it will opt for public listing or for a spinoff. Once the domestic businesses of UBS and Credit Suisse are integrated, about 10,000 roles could be axed.
In the past couple of months, many of Credit Suisse’s good performers have been poached by other financial institutions including Wells Fargo, Deutsche Bank, Jefferies Financial Group and the likes.