UBS-Credit Suisse merger: Hundreds of Credit Suisse bankers to face layoff
Back in March of this year, UBS made the decision to acquire Credit Suisse for 3 billion francs ($3.5 billion) following concerns from Swiss authorities that a financially weakened Credit Suisse could face bankruptcy. Now, UBS Group AG is preparing to eliminate hundreds of jobs at Credit Suisse as the merger process commences.
According to a report from Swiss weekly HandelsZeitung, UBS Chief Executive Sergio Ermotti aims to swiftly address the substantial duplication in their operations and streamline processes.
In the upcoming period, a significant number of investment bankers at Credit Suisse are facing the possibility of layoffs. "The transformation is beginning: in the coming days several hundred Credit Suisse bankers will receive termination notices," the Swiss weekly said.
The Swiss media has speculated that there could be approximately 30,000 to 35,000 job cuts globally. At the end of the previous year, the combined workforce of both banks amounted to approximately 120,000 employees worldwide, with 37,000 based in Switzerland.
Earlier, UBS had announced plans to reduce costs and leverage synergies, leading to job cuts across various countries.
All about UBS-Credit Suisse merger:
On June 12, UBS successfully finalised the acquisition of Credit Suisse, and the newly merged entity began operating as a unified and consolidated banking group.
In less than three months, UBS closed the deal, considering its significant scale and complexity. This swift action was taken to offer enhanced certainty to Credit Suisse clients and employees and to prevent any potential departures.
In an open letter published in Swiss newspapers, UBS CEO Sergio Ermotti and Chairman Colm Kelleher said, "This is the start of a new chapter – for UBS, Switzerland as a financial centre and the global financial industry."
“Credit Suisse Group AG ADS will no longer be traded on the New York Stock Exchange. As announced on 19 March 2023, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held,” the company said in a statement.
With $5 trillion of assets under its oversight, the combined group will position UBS as a prominent player in crucial markets, which would have taken years to achieve independently in terms of size and reach. Additionally, the merger marked the end of Credit Suisse's 167 years of independence.