Leaders of the megabank born from compatriot UBS’s takeover of Credit Suisse plan to cut 20 to 30% of jobs, or 25,000 to 36,000 jobs worldwide, the weekly says. SonntagsZeitung, citing unidentified inside information. This is far more than the number of job cuts planned by Credit Suisse as part of its restructuring plan before Swiss authorities pressured UBS to urgently buy its rival, which was threatened with collapse. In Switzerland alone, up to 11,000 jobs would be affected.
Before the acquisition, UBS employed just over 72,000 people compared to Credit Suisse’s more than 50,000. The weekly does not specify the period in which these job cuts are planned, nor the most affected activities within the two banking giants. Before being swallowed on March 19 by Switzerland’s number one bank, Credit Suisse planned to cut 9,000 jobs by 2025 as part of its recovery plan.
Duplicate risks
Duplication risks are perceived as significant, to the extent that the profiles of UBS and Credit Suisse are similar. As active as UBS in wealth management and investment banking, Credit Suisse also relies like its competitor on local activity, offering especially mortgages and loans to SMEs. In Switzerland, its retail bank has 95 branches, compared with 200 for UBS. Credit Suisse employs about 17,000 people there.
According to the Sunday edition of the tabloid Click, the Credit Suisse brand should be around for another three to four years before it disappears. Credit Suisse shareholders, who will only receive 76 cents per share, will gather in Zurich on Tuesday for the bank’s General Meeting. Those of UBS have an appointment the next day also in Zurich. Their merger takes place without the approval of their respective shareholders, the Swiss authorities have lifted the obligation to consult them on behalf of the best interests of the Swiss financial center.
Source: BFM TV
