UBS-Credit Suisse Merger: Hundreds Of Investment Bankers To Be Laid Off, Says Report

The acquisition worth $3.2 billion was paved by the Swiss government and regulator following the global banking crisis that originated from the US financial market and caused turbulence in markets.

As per the report, cuts in Credit Suisse and UBS Group are expected to range from 20,000 to 30,000 jobs.

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Following the merger of two Swiss banking giants, UBS Group and Credit Suisse, hundreds of investment bankers are expected to be terminated in the coming days. A Swiss weekly HandelsZeitung on Friday reported that UBS chief executive Sergio Ermotti quickly wants to eliminate a huge amount of duplication in the workforce of the firm. This follows an emergency takeover of Credit Suisse by the UBS Group AG in March this year.

The acquisition worth $3.2 billion was paved by the Swiss government and regulator following the global banking crisis that originated from the US financial market and caused turbulence in the stock market. It also exposed liquidity constraints and issues with Credit Suisse's balance sheet. 

The report by the Swiss Weekly citing two sources said that the transformation of the merger entity is beginning and in the coming days several hundred Credit Suisse bankers will receive termination notices. As per the report, cuts are expected to range from 20,000 to 30,000 jobs.

Other Swiss media have speculated about between 30,000 and 35,000 job cuts across the world.

A Bloomberg report last month said that the combined workforce of UBS and Credit Suisse Group rose to 120,000 after the takeover. At the time, Credit Suisse's headcount stood at 45,000. 

On June 12, the merger completion of Credit Suisse by UBS was announced, and the newly consolidated banking group commenced its operations. The deal was executed in under three months, despite its substantial scale and complexity, in order to provide reassurance to clients and employees of Credit Suisse and prevent any potential departures.

Following the merger, Credit Suisse Group AG ADS ceased trading on the New York Stock Exchange. As per the announcement, Credit Suisse shareholders received 1 UBS share for every 22.48 Credit Suisse shares held.

The consolidated group now manages assets worth $5 trillion, granting UBS a dominant position in the markets. Additionally, the merger marked the end of Credit Suisse's 167-year history as an independent entity.