Things are so sound in the banking world and so solid with the global economy that UBS is making yet another round of job cuts at Credit Suisse. Over the summer we documented how UBS' plan for the bank was to immediately cut half of its staff.
Now, the parent company of the bailed out bank is targeting an additional 10% of the company's "support staff", including in areas like compliance, risk and marketing, Bloomberg reported Friday morning.
The cuts are going to start November 6, the report says. As Bloomberg notes, UBS has been vague about the comprehensive cutbacks that will follow its organizational overhaul. CEO Sergio Ermotti had earlier indicated that approximately 3,000 positions will be eliminated in Switzerland in the coming years, with the downsizing set to commence in late 2024 or early 2025.
According to filings, UBS and Credit Suisse had nearly 39,000 Swiss employees last year. Ermotti has hinted at more voluntary exits. Since the year began, roughly 8,000 have left Credit Suisse globally, a trend expedited by UBS following its acquisition.
UBS successfully "completed" its emergency takeover of Credit Suisse this summer and promptly started the first phase of a massive headcount reduction of Credit Suisse's workforce in July.
We had detailed "Massive Layoffs On Deck At Credit Suisse" and "UBS Reportedly Re-Starts Layoffs" following the $3 billion deal, first announced in March and brokered by the Swiss regulators that allowed UBS to purchase the struggling Swiss lender.
As previously noted, UBS CEO Sergio Ermotti was brought back to ensure the integration of the two banks, which could take several years, will go smoothly.
A person familiar with the upcoming layoffs told Bloomberg that half of Credit Suisse's workforce, including bankers, traders, and support staff across New York, London, and Asia offices, would be fired.
We noted over the summer that the firings would take place in three rounds: the first over the summer and two more during the fall. It looks like we've arrived.
Over the summer, the headcount at Credit Suisse was approximately 45,000. When UBS took over the troubled lender, its workforce jumped to about 120,000.
