Business
Layoffs At UBS To Begin In June, According To SonntagsZeitung
(CTN News) – The newspaper SonntagsZeitung reported on Sunday that UBS’s (UBSG.S) sweeping cost-cutting program announced following its acquisition of Credit Suisse will be implemented in five waves starting in June.
In response to our request for comment, UBS declined to do so.
According to reports made at the beginning of August, UBS is planning to replace about one out of every twelve of its Swiss jobs and cut costs by in excess of $10 billion over the course of the next five years as it consolidates a competitor that collapsed as panicked customers pulled billions from their accounts.
Based on the global cost reductions, analysts predict that between 30,000 and 35,000 jobs may have to be relocated around the world as a result of the global cost reductions.
Cuts in staff will be the major source of cost savings, which will result in the most substantial impact on the bottom line.
Approximately 50-60% of ex-CS employees will likely be laid off over a period of five months,” SundaysZeitung quoted a source as saying, “it is likely that 50 to 60 percent of ex-CS employees will lose their jobs.”
It has been reported in the newspaper that there will be four further rounds of layoffs following the initial round in June, which is expected to result in up to 25% of former Credit Suisse employees being laid off, taking place in August, September, October and November. The total savings are estimated at 12 billion Swiss francs ($13.2 billion).
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