UBS is preparing to initiate job cuts in Asia's investment banking sector at Credit Suisse starting next month. This move comes as the banks progress towards integrating their respective businesses.

Last week, UBS successfully concluded its emergency acquisition of competitor Credit Suisse, forming a Swiss banking and wealth management powerhouse with a substantial $1.6 trillion balance sheet and a workforce of 120,000 employees.

Two of the sources revealed that there will be notable reductions in the number of Credit Suisse investment bankers operating in the Asia Pacific region, particularly in Australia and China, where the two banks have the most overlapping presence.

According to Reuters, UBS is also planning to eliminate a significant portion of Credit Suisse's Asia consumer and retail, as well as general industrial group coverage teams.

The majority of investment bankers within Credit Suisse's technology, media, and telecoms team are expected to be retained, as per the information provided by the three sources. One of the sources further indicated that dealmakers handling non-China financial institutions are also likely to be retained.

According to the first two sources, UBS notified its staff about the impending job cuts on Tuesday. The exact number of positions to be eliminated was not immediately disclosed.

The sources requested anonymity as they were not authorised to speak with the media. Both UBS and Credit Suisse declined to provide any comments on the matter.

Earlier this month, Reuters reported that UBS was actively working towards retaining over 100 investment bankers from Credit Suisse in the Asian region. Additionally, UBS was reportedly engaged in advanced discussions to retain numerous senior dealmakers in countries such as South Korea, Thailand, Vietnam, and India.

According to one of the three sources and an additional individual familiar with the situation, most of the investment bankers from Credit Suisse in Southeast Asia have departed. A fifth source, who is knowledgeable about UBS's plans, stated that UBS's current priority is to have its newly appointed regional leadership examine Credit Suisse's book and client list. This is crucial because the risk profiles of the clients between the two banks differ significantly.

As per one of the initial three sources and the fifth individual, former Credit Suisse bankers in Asia are presently functioning autonomously from their new UBS counterparts. They continue to work independently on ongoing deals, mandates, and new pitches.