UBS to Cut 20-30% of Workforce Globally
UBS plans to reduce its global workforce by 20 to 30% after completing its takeover of Credit Suisse. This could result in as many as 36,000 job cuts worldwide, according to SonntagsZeitung, which cited a senior manager at UBS.
11,000 Employees in Switzerland to be Laid Off
The Swiss newspaper also reported that approximately 11,000 employees would be laid off in Switzerland. The two banks employed nearly 125,000 people by the end of last year, with about 30% of the total workforce located in Switzerland.
Predicted Layoffs Surpass Credit Suisse's Initial Estimate
The number of predicted layoffs far exceeds the 9,000 job cuts that Credit Suisse announced before being rescued by UBS. The final total of layoffs was expected to be a multiple of that figure due to significant overlap between the two banks.
Rival Banks Poised to Recruit Displaced Employees
Major banks, such as Deutsche Bank, Citigroup, and JP Morgan Chase, are preparing to recruit investment bankers and wealth managers likely to be let go after these layoffs. Headhunters have already been inundated with job inquiries from Credit Suisse employees.
Swiss Government's Emergency Takeover
The Swiss government announced the emergency takeover of Credit Suisse by UBS in a $3.3 billion deal on March 19, following five days of talks. Years of scandals at Credit Suisse led to massive deposit outflows, which would have caused its collapse had action not been taken.
Shareholder Impact Expected to be Limited
Although the annual general meetings of the two banks will likely feature many angry voices, shareholder impact is expected to be minimal due to the government resorting to emergency law to push through the deal without needing shareholder approval.
UBS Shortlists Four Consultants for Integration Advice
UBS has shortlisted Bain, the Boston Consulting Group, McKinsey, and Oliver Wyman as management consultants to advise on integrating Credit Suisse. The contract is expected to be one of the most lucrative in years for dispensing financial services advice due to the complex, years-long process needed to merge the banks.