UBS plans significant job cuts at Credit Suisse starting next month, affecting a substantial portion of staff across banking, trading, and support roles in London, New York, and Asia, according to sources familiar with the plans. The move follows the banks’ merger and aims to align headcount with the newly combined entity’s needs.
Reports indicate the layoffs will occur in three rounds this year, with the first round scheduled for the end of July and the remaining rounds in September and October. The reductions are tied to the integration of the two banks, which together employed around 80,000 people before the merger, with Credit Suisse accounting for a sizeable share of the workforce. UBS expects the restructuring to generate substantial cost savings in the coming years, targeting roughly $6 billion in savings.
Company discussions have been led by Sergio Ermotti, the chief executive officer who returned to UBS in March to steer the merger. The leadership has stressed that the integration is progressing and that the workforce realignment is a necessary step in strengthening the group’s balance sheet and competitive position.
The UBS-Credit Suisse merger occurred in the context of broader financial market volatility and a public focus on stability after units such as Silicon Valley Bank faced distress in the United States. The aim has been to restore confidence in the newly formed entity and to position it for resilient growth in a challenging environment.
Industry observers note a trend of staffing adjustments across the sector, with firms like Goldman Sachs announcing reductions and others such as Morgan Stanley winding down certain operations as they reorganize for efficiency. These moves reflect ongoing efforts across major banks to align talent with strategic priorities while managing costs in a changing financial landscape.
Overall, the ongoing layoffs underscore the scale of the UBS-Credit Suisse integration and the commitment to building a sustainable, forward-looking institution that can weather market headwinds and deliver long-term value for clients, employees, and shareholders. Attribution: Bloomberg and market reports