UBS to Cut More Than Half of Credit Suisse Workforce

UBS Group is planning to slash more than half of Credit Suisse's workforce starting next month. The cuts will primarily be felt by bankers, traders, and support staff in Credit Suisse's investment branch locations in Londonand New York, although almost all job functions are at risk.

UBS aims to eventually reduce Credit Suisse’sheadcount by approximately 30%, which translates to about 15,000 individuals. Currently, Credit Suisse employs around 45,000 staff. 

Approached for comment, both UBS and Credit Suisse have declined to provide any further details. Other operating locations have already taken a hit. In the Asia-Pacific region, Australia and China has seen a significant reduction in the numbers of investment bankers.

Earlier this month, UBS Chief Executive Sergio Ermottihinted at the difficult decisions regarding job cuts following the takeover of Credit Suisse, although he did not disclose specific numbers regarding potential layoffsor the timing of the process.

In June of this year, UBS completed its emergency takeover of struggling competitor Credit Suisse, creating a Swiss banking and wealth management powerhouse with a massive $1.6 trillion balance sheet and a workforce of 120,000 employees.

The government-sanctioned moved calmed the nerves of an unsettled global banking community, which was on tenterhooks after the collapse of Silicon valley Bank and First Republic Bank in the US.