UBS To Initiate Layoffs In Five Waves

Swiss banking giant UBS is gearing up to implement a series of layoffs in five stages starting from June, as part of its efforts to streamline operations and cut costs following its acquisition of Credit Suisse. The plan, outlined in an August announcement, aims to achieve significant savings, largely through reducing the workforce.

Although UBS has not provided specific details about the layoff plan, it is expected to eliminate approximately one in twelve jobs in Switzerland, with cost reductions exceeding $10 billion. This move comes after Credit Suisse faced challenges, including mass withdrawals from customer accounts amid heightened uncertainty.

Analysts estimate that the global job cuts could range between 30,000 and 35,000 positions. According to reports, 50-to-60 per cent of former Credit Suisse employees could be affected by the layoffs across the five waves of downsizing.

The first phase, scheduled for June, is projected to result in the redundancy of 25-30 per cent of the ex-Credit Suisse workforce. Subsequent rounds are planned for August, September, October, and November, with expected savings totaling 12 billion Swiss francs ($13.2 billion).

These layoffs underscore UBS's commitment to optimizing its operations and strengthening its financial position amid evolving market dynamics. With the banking sector undergoing transformation due to technological advancements and changing consumer preferences, UBS's proactive measures demonstrate its adaptability and resilience in navigating these shifts.