UBS to cut 3,000 jobs in Switzerland after Credit Suisse integration

A cut of 3,000 jobs by UBS for the next few years has been announced after the integration of Credit Suisse

UBS plans to cut around 3,000 jobs in Switzerland over the next few years as a result of the purchase of its rival Credit Suisse, agreed last March and completed in June, as announced by the entity’s CEO, Sergio Ermotti.

“In Switzerland, from a proactive point of view, we expect that around 3,000 jobs will be eliminated in the coming years,” the banker said in an interview with Bloomberg TV, specifying that around a thousand of this adjustment will correspond directly to the decision to integrate the Swiss bank of Credit Suisse.

In this sense, the CEO of UBS has defended that in the case of having chosen to sell this Credit Suisse business, a cut of some 600 jobs would have been required, while the other 2,000 positions that will be eliminated respond to the needs of the restructuring.

Beyond the situation in Switzerland, the banker has recognized that in the banking sector it is very difficult to undertake a restructuring and extract synergies without affecting the workforce, although he has stressed that a large element of the cost adjustment is due to real estate planning, to the rationalization of legal entities and the closure of IT platforms, while factors such as wear and tear, retirement and internal mobility must also be taken into account.

“Having said this, of course, we are going to have to take some proactive measures in terms of layoffs in the coming years,” he admitted, after the purchase of Credit Suisse fattened the entity’s workforce by around 45,000 employees, to around 120,000 workers.

In this way, the CEO of UBS has highlighted that, since the beginning of the year, Credit Suisse has already carried out a workforce reduction of 8,000 people as a result of the cost measures that Credit Suisse had initiated and that have been accelerating in the second quarter.

Source: dpa

(Reference image source: Bernadr Hermant, Unsplash)

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