After UBS and Credit Suisse merge, UBS is likely to fire over a hundred investment bankers from Credit Suisse
Following the merger, Union Bank of Switzerland (UBS) allegedly intends to remove more than 100 Credit Suisse investment bankers. The UBS Credit Suisse merger plans have started to be implemented, according to a story from the Swiss weekly HandelsZeitung that was published on Friday.
The analysis identified duplication of activities as the primary cause of the financial firm’s huge layoffs. It further said that Sergio Ermotti, chief executive of UBS, wants to quickly start working on reducing the enormous amount of redundancy in their processes.
The Swiss weekly said that “the transformation is starting: several hundred Credit Suisse bankers will receive termination notices in the coming days.”
On June 12, 2023, UBS finalized the purchase of Credit Suisse, and the united company began operations as a consolidated banking organization. For the previous day, shares of Credit Suisse were traded on six Swiss markets.
Following the acquisition, Credit Suisse stockholders got one UBS share for every 22.48 Credit Suisse shares they owned. The market is keenly awaiting UBS’s Q1 2023 results for the merged company, which are anticipated on August 31, 2023.
In a hurriedly planned deal for 3 billion francs ($3.5 billion), UBS agreed to acquire its competitor in response to rumors that Credit Suisse was going bankrupt. According to media sources, the market was doubtful that Credit Suisse would file for bankruptcy, and since then, job-related rumors have been rampant, which has disturbed Swiss authorities.
The Swiss media had predicted 30,000 to 35,000 job losses worldwide due to the UBS Credit Suisse merger. By the end of 2022, the two banks’ combined global workforce numbered around 120,000 people, including 37,000 in Switzerland.
