UBS Sharpening the Jobs Cuts Axe for Credit Suisse: UBS is said to be planning on three rounds of job cuts starting in July. More than half of Credit Suisse's workforce is to be eliminated. UBS CreditSuisse
After UBS took over Credit Suisse in March on the orders of the government, its workforce grew to about 120,000. That number is set to shrink by around 30 percent, corresponding to 35,000 jobs, starting in July as the first of three rounds of planned cuts. Additional rounds will follow in September and October as part of UBS's goal of saving $6 billion in personnel costs in the next years.
The cuts are expected to fall heavily on bankers, traders, and support staff at Credit Suisse's investment banking operations in New York and London. Parts of Asia will be affected as well, according to a «Bloomberg» report Wednesday citing people familiar with the matter. It's no secret that UBS wants massively scale back investment banking operations at its newly acquired business.
At a conference in Zurich yesterday, Ermotti said over the next 20 days, the third level of management will be announced, with up to 1,500 employees having their responsibilities clarified. He went on to say the integration of Credit Suisse was proceeding «very well», and that more clarity will follow at the end of the summer. UBS also delayed reporting its second-quarter financial results until August 31.
Private bankers are seen as safe for the time being, with UBS hoping to retain the majority of those from Credit Suisse who have not yet left. In Asia, plans to keep «a few hundred» private bankers for a total of 1,200 in the region, according to the report. For the time being, UBS will also need to keep those at Credit Suisse who manage structured loans to the wealthy and equity derivatives books.
Earlier this month, the social plans of the two banks were aligned in Switzerland, providing more advantageous transition periods, compensation, and other benefits. It doesn't apply in other countries, however, as finews.com reported.
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