The decision is explained by the need to reduce costs.
However, UBS does not provide exact figures.
UBS has
finalized a takeover transaction within three months that was expected to take
up to a year. The acquisition of Credit Suisse (CS), which found itself on the
brink of bankruptcy, proceeded much smoother than anticipated. However, Sergio
Ermotti, the CEO of UBS Group AG, warned that the Swiss lender may face massive
employment cuts, particularly in the investment banking sector.
UBS Plans 'Massive
Downsizing' at Credit Suisse
An article
by Ermotti appeared in the Swiss newspaper Tages-Anzeiger on Saturday,
summarizing the decision and process of acquiring CS. According to Ermotti, the
new UBS will be a bank that all Swiss can be proud of.
However, CS
employees may not have reasons to be proud or pleased. According to Ermotti, a
'massive downsizing' awaits them. Although the CEO did not provide exact values or a percentage range, he emphasized that it is necessary from a cost reduction
perspective. Earlier, UBS revealed that 10% of employees left Credit Suisse
before the acquisition was finalized.
"The
task ahead is demanding and takes time, and difficult decisions have to be
made. It requires focus, humility and open communication," Ermotti
originally commented in Swiss and was translated to English.
Ermotti
certainly knows how to cut employment. The bank announced the need to reduce
jobs by 36,000 in April before finalizing the CS acquisition. However, the UBS
case is no exception. According to Bloomberg data, over 500,000 people
have lost jobs in significant economic sectors since last October.
What will
happen to the Swiss part of Credit Suisse's business is also unclear. Previously, UBS
spoke about plans for full integration of the local branch. However,
Ermotti commented that various solutions, including a sale, are being considered.
The final decision was to be made by the end of this quarter, leaving less than
two weeks.
Two weeks
ago, the Swiss government reached an agreement with UBS to absorb potential
losses of up to CHF 9 billion ($10 billion) that the global lender might incur due
to its liquidation of rival Credit Suisse's assets.
The
government had facilitated UBS's emergency procurement of Credit Suisse in
March to avoid a potential banking and economic meltdown in Switzerland. At
that point, it pledged its readiness to bear part of any losses arising from
the sale of the troubled lender's assets.
Meanwhile, UBS
Group AG (UBS) and Credit Suisse Group AG (CS) are maintaining their operations
in Singapore without disruption. The Monetary Authority of Singapore (MAS) has
confirmed that both banks will continue to operate under separate licenses,
preserving their core private and investment banking activities.
UBS has
finalized a takeover transaction within three months that was expected to take
up to a year. The acquisition of Credit Suisse (CS), which found itself on the
brink of bankruptcy, proceeded much smoother than anticipated. However, Sergio
Ermotti, the CEO of UBS Group AG, warned that the Swiss lender may face massive
employment cuts, particularly in the investment banking sector.
UBS Plans 'Massive
Downsizing' at Credit Suisse
An article
by Ermotti appeared in the Swiss newspaper Tages-Anzeiger on Saturday,
summarizing the decision and process of acquiring CS. According to Ermotti, the
new UBS will be a bank that all Swiss can be proud of.
However, CS
employees may not have reasons to be proud or pleased. According to Ermotti, a
'massive downsizing' awaits them. Although the CEO did not provide exact values or a percentage range, he emphasized that it is necessary from a cost reduction
perspective. Earlier, UBS revealed that 10% of employees left Credit Suisse
before the acquisition was finalized.
"The
task ahead is demanding and takes time, and difficult decisions have to be
made. It requires focus, humility and open communication," Ermotti
originally commented in Swiss and was translated to English.
Ermotti
certainly knows how to cut employment. The bank announced the need to reduce
jobs by 36,000 in April before finalizing the CS acquisition. However, the UBS
case is no exception. According to Bloomberg data, over 500,000 people
have lost jobs in significant economic sectors since last October.
What will
happen to the Swiss part of Credit Suisse's business is also unclear. Previously, UBS
spoke about plans for full integration of the local branch. However,
Ermotti commented that various solutions, including a sale, are being considered.
The final decision was to be made by the end of this quarter, leaving less than
two weeks.
Two weeks
ago, the Swiss government reached an agreement with UBS to absorb potential
losses of up to CHF 9 billion ($10 billion) that the global lender might incur due
to its liquidation of rival Credit Suisse's assets.
The
government had facilitated UBS's emergency procurement of Credit Suisse in
March to avoid a potential banking and economic meltdown in Switzerland. At
that point, it pledged its readiness to bear part of any losses arising from
the sale of the troubled lender's assets.
Meanwhile, UBS
Group AG (UBS) and Credit Suisse Group AG (CS) are maintaining their operations
in Singapore without disruption. The Monetary Authority of Singapore (MAS) has
confirmed that both banks will continue to operate under separate licenses,
preserving their core private and investment banking activities.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!