Fears grow of massive job losses following Credit Suisse takeover by UBS
London, Mar 21 (PTI) As the dust settles after the emergency rescue of Credit Suisse by UBS, fears of huge job losses are rising, say media reports.
The Guardian reported that the shotgun wedding between two Swiss banks at the end of last week will create 120,000 strong financial institutions – and it already seems inevitable that the workforce will shrink.
Switzerland’s financial sector is already bracing for huge losses from the controversial takeover, with the Swiss bank employees’ union warning on Monday that “many employees’ jobs are at stake”, it said.
The Financial Times reported that Credit Suisse’s domestic business and its investment bank, which collectively employ more than 30,000 staff, could bear the brunt of the cuts.
A third of the 120,000 jobs at the combined group could be at risk, according to people familiar with UBS’s plans, as UBS has closed most of the investment bank and removed overlapping roles in Switzerland.
Credit Suisse, which at the end of 2022, employed just over 50,000 people, was already in the midst of a sweeping job-cutting campaign, slashing 4,000 positions so far this year.
But many of Credit Suisse’s 17,000 investment bankers are expected to lose their jobs as a result of the acquisition as UBS shuts down most of the unit, the Financial Times reported.
On Sunday night, UBS Chairman Colm Kelleher made clear that he plans to run the investment banking part of Credit Suisse. The Financial Times reported that UBS itself operates an investment bank-lite model, more focused on asset management, which is less risky.
(This story has not been edited by The Kashmir Monitor staff and was auto-generated from a syndicated feed)