Credit Suisse and UBS Merger Could Cost 36,000 Jobs: Report
A merger between Credit Suisse and UBS banks could result in 36,000 job cuts worldwide, weekly SonntagsZeitung reported on Sunday.
The UBS takeover of Credit Suisse was hastily arranged by the Swiss government on March 19 to avert a global financial crisis, following concerns about the contagion from the collapse of banks in the United States. Ky. UBS announced on Wednesday that it would bring back former CEO Sergio Ermotti to handle the major risks associated with the Swiss banking giant’s acquisition of its struggling rival Credit. Suisse.
On Sunday, citing anonymous internal sources, SonntagsZeitung said management was considering cutting between 20% and 30% of the workforce, meaning between 25,000 and 36,000 jobs.
According to the weekly, up to 11,000 jobs could be cut in Switzerland alone, but did not provide details on which posts might be targeted.
Before the merger, UBS and Credit Suisse employed more than 72,000 and 50,000 people, respectively.
UBS and Credit Suisse, the second largest bank in Switzerland, are both among selected banks in the world that are considered globally systemically important financial institutions (G-SIFIs) and are therefore considered is too big to crash.
“There’s a lot of risk in integrating these businesses,” UBS President Colm Kelleher said this week.
Credit Suisse has been embroiled in a series of scandals in the years leading up to the stock price plunge on March 15, as investor confidence faltered following two bank failures in the United States.
Among these were the bankruptcy of the British financial firm Greensill and the collapse 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 involving the Bulgarian cocaine network.
(This story has not been edited by NDTV staff and was automatically generated from the aggregate feed.)