UBS will reportedly cull around 3,000 jobs in the coming years as part of its intent to drive down costs by more than $10 billion following its takeover of rival Credit Suisse.
In an internal memo seen by Reuters, UBS group chief executive Sergio Ermotti told employees the job cuts would occur within its operations in its native Switzerland as it completes integration of Credit Suisse.
“The vast majority of cost reductions will come from natural attrition, retirements and internal mobility, while around 1,000 redundancies will result from the full integration of Credit Suisse (Schweiz) AG,” Ermotti said.
The news comes as UBS reported profits of almost $28 billion in its second quarter, with the investment bank stating it aims to “substantially complete” the integration of Credit Suisse.
Credit Suisse failed in March after a series of scandals and the discovery of “material weaknesses” in its financial reporting, by 2026.
To meet its aims, UBS said it plans to “simplify” its legal structure, which includes the merger of local operations UBS AG and Credit Suisse AG which is planned to complete in 2024.
“Two and a half months since closing the Credit Suisse acquisition, we are wasting no time in delivering value for all our stakeholders from one of the biggest and most complex bank mergers in history,” continued Ermotti. “We are winning back the trust of clients, reducing costs and taking the necessary actions to create economies of scale that will allow us to better focus our resources and target investments for future growth.
“This combination will reinforce our status as a premier global franchise,” he added.
It was also recently announced that 30 per cent of Credit Suisse roles in London were set to be axed.
Credit Suisse began to founder after its shares plummeted by 20 per cent in the wake of Silicon Valley Bank’s (SVB) collapse, which spooked investors throughout the financial ecosystem.
Following the announcement of its profits and plans to merge UBS AG and Credit Suisse AG, shares in UBS leapt to highs unseen since 2008.
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