UBS Group AG is set to slash jobs as part of its ongoing efforts to reduce its workforce following the takeover of Credit Suisse, according to a Bloomberg report citing sources.
The job cuts are anticipated to impact over a hundred roles across UBS’s global investment bank, the sources said. Additionally, job losses are foreseen in the wealth management and markets sectors, as per another insider.
These cuts, unlike routine performance-based adjustments, are slated to occur in the upcoming weeks. However, the report noted that decisions regarding the timing of the layoffs are not final and subject to change.
A UBS spokeswoman did not respond to queries.
Continued Efforts to Cut Costs
The emergency acquisition of Credit Suisse resulted in a substantial increase in UBS’s global staff, swelling by around 45,000 to about 120,000 employees.
This impending layoff marks the latest in a series of reductions at UBS. Although CEO Sergio Ermotti hasn’t specified the total number of job losses, the bank aims to achieve approximately $6 billion in staff cost savings in the upcoming years.
Following the government-brokered acquisition, UBS has displayed limited interest in Credit Suisse’s investment banking division. Earlier in January, the Zurich-based bank let go of a group of senior investment bankers and also downsized its staff in the Asia private wealth and investment banking sectors.
Market Response and Regulatory Challenges
UBS’s shares have recently dipped amid reports of Swiss government proposals to heighten regulatory capital requirements for the bank. These reforms, if implemented, could entail a capital impact of around $20 billion, as previously indicated by a knowledgeable source.
The heightened regulatory environment coincides with UBS’s involvement in the intricate integration and restructuring of Credit Suisse. Chairman Colm Kelleher cautioned in November that 2024 would be a particularly challenging year in this multi-year process, citing the legal consolidation of parent banks and major subsidiaries.
(With inputs from Bloomberg)
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Published: 18 Apr 2024, 07:30 AM IST