UBS is reportedly planning to cut over half of Credit Suisse’s workforce as it completes its takeover of the Swiss bank.
The newly merged banking behemoth is planning on reducing its headcount by as much as 35,000 people in an attempt to cut costs, Bloomberg reported. Credit Suisse currently employs around 45,000 people.
UBS is reportedly aiming to cut costs by $6bn over the coming years. Bankers and support staff in Credit Suisse’s investment banking division – particularly in London, New York and Asia – are expected to be most at risk, although all segments will face cuts.
UBS has repeatedly flagged its intention to “downsize” Credit Suisse’s loss-making investment banking division, which had been the source of much of its scandals.
At the time of the takeover, the two banks employed around 11,000 people between them in London, with a high concentration in investment banking.
Earlier this month, it was reported that UBS would start cutting Asian-focused investment banking roles from next month.
The first round of cuts will likely leave out the significant overlaps that exist between the pair’s domestic banks.
UBS will make a decision in the third quarter on whether to integrate Credit Suisse’s domestic business or spin it off. As many as 10,000 jobs would be cut if the Swiss domestic businesses of the two banks are merged, Bloomberg reported.
Chief executive Sergio Ermotti suggested that around 10 per cent of Credit Suisse’s employees have left the bank in the past few months.
The deal, engineered by Swiss authorities in March to prevent a broader financial meltdown, is the largest banking merger since 2008. It will create a banking behemoth with over $5tn in assets – twice the size of Swiss GDP.
Credit Suisse and UBS declined to comment.