UBS To Cut More Jobs Post Credit Suisse Takeover, Hundreds Affected

UBS Group AG is poised to trim its workforce as part of an ongoing initiative to streamline operations following its acquisition of Credit Suisse, according to sources cited in a Bloomberg report.

The job cuts are expected to affect over a hundred roles across UBS's global investment bank, with additional losses projected in the wealth management and markets sectors, according to insiders.

Unlike routine performance-based adjustments, these layoffs are scheduled to take place in the coming weeks, although the timing remains subject to change, as noted in the report.

When contacted by a media house, a UBS spokeswoman declined to comment on the matter.

Continuing its cost-cutting efforts, the emergency acquisition of Credit Suisse significantly increased UBS's global staff by around 45,000, bringing the total to approximately 120,000 employees.

This impending round of layoffs is the latest in a series of workforce reductions at UBS. Although CEO Sergio Ermotti has not specified the total number of job losses, the bank aims to achieve approximately USD 6 billion in staff cost savings in the coming years.

Since the government brokered acquisition, UBS has shown limited interest in Credit Suisse's investment banking division. In January, the Zurich-based bank parted ways with a group of senior investment bankers and downsized its staff in the Asia private wealth and investment banking sectors.

The news of potential regulatory changes in Switzerland has led to a recent decline in UBS's shares. These proposed reforms, if enacted, could result in a capital impact of around USD 20 billion, according to a knowledgeable source.

Amidst the heightened regulatory environment, UBS faces challenges related to the integration and restructuring of Credit Suisse. Chairman Colm Kelleher warned in November that 2024 would be a particularly difficult year in this multi-year process, citing the legal consolidation of parent banks and major subsidiaries