Advertisement
This Article is From Apr 02, 2023

Credit Suisse and UBS Merger Could Cost 36,000 Jobs: Report

Before the merger, UBS and Credit Suisse had employed slightly more than 72,000 and 50,000 people, respectively.

Credit Suisse and UBS Merger Could Cost 36,000 Jobs: Report
The merger between banks Credit Suisse and UBS could see up to 36,000 jobs worldwide.

The merger between banks Credit Suisse and UBS could see up to 36,000 jobs being cut across the world, the SonntagsZeitung weekly reported on Sunday.

The takeover by UBS of Credit Suisse was hastily arranged by the Swiss government on March 19 to prevent a global financial meltdown, following fears of contagion from the collapse of banks in the United States. UBS announced on Wednesday it would bring back former Chief Executive Sergio Ermotti to handle the huge risks involved in the Swiss banking giant's controversial absorption of its troubled rival Credit Suisse.

On Sunday, citing internal anonymous sources, SonntagsZeitung said management was mulling cutting between 20 per cent and 30 per cent of the workforce, meaning between 25,000 and 36,000 jobs. 

Up to 11,000 jobs could be cut in Switzerland alone, according to the weekly, which did not provide details of which posts could be targeted.

Before the merger, UBS and Credit Suisse had employed slightly more than 72,000 and 50,000 people, respectively.

UBS and Credit Suisse, the second-biggest bank in Switzerland, were both among the select banks around the world considered to be global systemically important financial institutions (G-SIFIs) and therefore deemed too big to fail.

UBS chairman Colm Kelleher said this week: "There's a huge amount of risk in integrating these businesses."

Credit Suisse was embroiled in a series of scandals in the years leading up to a March 15 share price collapse, when investor confidence plunged following two bank failures in the United States.

Among these was the bankruptcy of the British financial company Greensill and the implosion of the US hedge fund Archegos. 

It was also caught up in a bribery scandal in Mozambique involving loans to state-owned companies and was fined $2 million in a money laundering case linked to a Bulgarian cocaine network.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Track Latest News Live on NDTV.com and get news updates from India and around the world

Follow us:
Previous Article
Woman Dies After Falling Overboard From Luxury Cruise Ship Off Channel Islands
Credit Suisse and UBS Merger Could Cost 36,000 Jobs: Report
US Diver's Body Parts Found In Shark's Stomach. Here's Why Her Friend Still Denies Shark Attack
Next Article
US Diver's Body Parts Found In Shark's Stomach. Here's Why Her Friend Still Denies Shark Attack
Listen to the latest songs, only on JioSaavn.com