London: As the dust settles following the emergency rescue of Credit Suisse by UBS, fears of heavy job losses are growing, media reports said.
The shotgun wedding hammered out between the two Swiss banks last weekend will create a 120,000-strong financial institution – and it already seems inevitable that the workforce will shrink, The Guardian reported.
Switzerland’s financial sector already anticipating a heavy hit from the contentious takeover, with the Swiss Bank Employees Association warning on Monday that “the jobs of very many employees are at stake”, it said.
Credit Suisse’s domestic business and its investment bank, which collectively employ more than 30,000 staff, are expected to bear the brunt of the cuts, the Financial Times reported.
According to people familiar with UBS’s plans, as much as a third of the 120,000 jobs in the combined group could be at risk, as UBS winds down much of the investment bank and removes overlapping roles in Switzerland.
Credit Suisse, which, at the end of 2022, employed just over 50,000 people, was already in the middle of a wide-ranging job-cutting drive, with 4,000 positions slashed so far this year.
But the takeover is expected to result in many of Credit Suisse’s 17,000 investment bankers losing their jobs as UBS winds down most of the unit, Financial Times reported.
On Sunday night, UBS Chairman Colm Kelleher explained that he plans to run down the investment banking part of Credit Suisse. UBS itself operates an investment bank-lite model, more focused on asset management which is less risky, Financial Times reported.