New Layoffs At UBS As Credit Suisse Integration Continues

(CTN News) – Several thousand jobs have been eliminated within UBS’s investment bank after the Swiss lender acquired rival Credit Suisse.

Financial News was contacted by bankers regarding the latest layoffs announced by the Swiss bank on 17 January. The cuts are targeted at the managing director level within the bank’s global banking business.

It was not possible to determine the number of reductions at the time of publication, but they are mainly the result of cost-cutting from the integration with Credit Suisse rather than performance-related changes.

UBS has been steadily cutting its employee numbers since it acquired rival Credit Suisse for $3.25 billion in March 2023 at the Swiss government’s request. It has been openly acknowledged by the bank that it needs to reduce its headcount since the deal was announced.

A first round of cuts related to the integration occurred in July last year, when approximately 200 investment bankers across all levels of seniority were terminated, primarily from Credit Suisse, according to Financial News. Support functions were also targeted in October, with approximately 10% of the positions being at risk.

There have been predictions that up to 35,000 jobs could be lost as a result of the merger of the two companies, with 3,000 positions already being eliminated from its Swiss operations.

As reported in UBS’s third quarter results, 13,000 employees have left the company since the end of 2022, with 4,000 leaving during the third quarter alone.

The UBS investment bank has nevertheless increased its ambitions, particularly in the United States, where it has recruited from outside and shifted staff from Credit Suisse.

Approximately 200 managing directors from Credit Suisse have been transferred to UBS as a result of the merger between UBS and Credit Suisse around the world.

This expansion will also include the creation of a new team of top dealmakers led by former investment banking co-head Ros L’Esperance, who will be responsible for drumming up business from the firm’s most important clients as part of its expansion drive.

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