Thousands of jobs at risk as UBS seeks to integrate Credit Suisse following US$3.2 billion rescue
- UBS and Credit Suisse employed nearly 125,000 people globally at the end of 2022, including about 23,000 in Asia
- Credit Suisse had been planning to cut about 9,000 roles over three years as part of ongoing restructuring efforts before weekend rescue
UBS’s US$3.2 billion rescue of smaller Swiss banking rival Credit Suisse could put thousands of jobs at risk, including positions in Asia, as the lender looks to cut the combined company’s annual cost base by US$8 billion over the next four years.
The two companies have significant overlap in terms of their investment banking and wealth management businesses and are Switzerland’s two largest lenders. Combined, they employed nearly 125,000 people as of the end of 2022, including about 23,000 roles in Asia.
UBS chairman Colm Kelleher said it is “too early to say” in terms of the size of potential job cuts, but said UBS plans to “downsize” Credit Suisse’s investment banking business and “align it with our conservative risk culture”. The combined investment banking functions will account for no more than 25 per cent of UBS’s risk weighted assets in the future, he said.
“We will be considerate employers, but we need to do this in a rational way, thoughtfully,” Kelleher said at a press conference on Sunday night.
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UBS has expressed interest in retaining Credit Suisse’s business in Switzerland and believes its wealth management arm can further strengthen its franchise. The combined company will have about US$5 trillion in invested assets.