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Merger Of UBS And Credit Suisse To Lay Off Hundreds Of Investment Bankers

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Merger Of UBS And Credit Suisse To Lay Off Hundreds Of Investment Bankers

(CTN News) – As a result of the merger of two of the world’s biggest banks, UBS Group and Credit Suisse, hundreds of investment bankers are expected to be laid off in the coming days.

A Swiss weekly called HandelsZeitung reported on Friday that UBS chief executive Sergio Ermotti plans to eliminate a huge amount of duplication in the firm’s workforce in the near future.

As a result of this, the UBS Group AG has taken over Credit Suisse by an emergency takeover in March of this year.

As a result of the global banking crisis that originated from the US financial market and caused turbulence in the stock market following the global banking crisis, the Swiss government and regulators agreed to the acquisition that was worth $3.2 billion.

As a result, Credit Suisse’s balance sheet was exposed as well as liquidity constraints and issues.

According to a report by Swiss Weekly, which cited two sources, the transformation of the merger entity is starting, and several hundred Credit Suisse bankers will receive termination notices within the next few days, as a result of the merger.

According to the report, there will be a range of 20,000 to 30,000 job cuts as a result.

In addition, other Swiss media outlets have speculated that the number of job cuts will range between 30,000 and 35,000.

As Bloomberg reported last month, the combined workforce of UBS and Credit Suisse Group has risen to 120,000 after the takeover of UBS. The headcount of Credit Suisse at the time was around 45,000.

On June 12, it was announced that the merger between Credit Suisse and UBS had been completed, and the newly consolidated banking group was able to get up and running.

Although this deal has a considerable scale and complexity, it was executed within less than three months in order to provide reassurance to clients and employees of Credit Suisse, as well as preventing any possible departures from the firm.

The New York Stock Exchange ceased to trade Credit Suisse Group AG ADS after the merger. For every 22.48 Credit Suisse shares held, shareholders received 1 UBS share.

UBS manages assets worth $5 trillion through the consolidated group, giving it a dominant position in the market. The merger also marked the end of Credit Suisse’s 167-year history as a separate company.

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Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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