Following the completion of Credit Suisse’s merger with UBS, the latter recently announced that it would completely absorb Credit Suisse’s 100-year-old Swiss division. This will result in the elimination of approximately 3,000 jobs across the country. This is part of the company’s redress strategy for Credit Suisse, which was acquired by UBS in March 2023.
In June 2023, it was announced that the first of three rounds of layoffs would see some Credit Suisse employees in London, New York, and parts of Asia lose their jobs in July 2023, and that the job cuts would be carried out in three rounds, beginning in July and ending in October 2023.
Following the merger, UBS stated that the two banks would continue to operate separately until the formal and legal integration takes place in 2024, with clients gradually transitioning to UBS systems by 2025.
Despite the complexities of the takeover, UBS made a significant net profit of $29.2 billion in the second quarter, while Credit Suisse lost $10.1 billion.
The integration of Credit Suisse’s domestic unit into UBS will eliminate at least 1,000 jobs. Furthermore, the overall restructuring following the merger will result in at least 2,000 more job losses over the next few years.
The bank remains confident that, given Switzerland’s favourable labour market, the impacted employees will be able to find alternative employment.
Earlier this month, UBS admitted that it could do without the financial assistance offered by the Swiss government to help with the takeover.