Just a few weeks after UBS announced its takeover of rival Credit Suisse, UBS is preparing to make major cuts once the deal is complete. UBS Group AG is looking to cut its workforce by 20% to 30%, resulting in the loss of roughly 36,000 of the 120,000 full-time positions following the merger.
The predicted layoffs won’t just affect those based in Switzerland. It’s anticipated that only 11,000 employees will be laid off in Switzerland with the rest of the cuts happening at other prominent UBS locations.
Prior to being rescued by UBS, Credit Suisse had announced roughly 9,000 job cuts. While the increase in the number of layoffs is not surprising given the merger, it also comes as many are opting to leave the firm at this uncertain time. UBS has noted that talent retention was going to be one of the bigger risks of the takeover.
While there were signs that major layoffs were due to happen, UBS has not given any clarity yet on the full extent of the cuts. They’ve announced that they will provide further details as soon as they can.
How will this impact brokers? That’s also to be determined, but any impact on headcount means less people to help carry the load of backoffice work, compliance, marketing…all of the things advisors expect from a BD to make their lives easier (and to justify global admin fees).
As a result of the merger and subsequent layoffs, other firms such as JPMorgan Chase & Co. and Citigroup Inc. are ramping up their efforts to recruit some of those that are likely to be let go. Many firms have already been approached by Credit Suisse employees looking for new jobs at the time of the takeover’s announcement.
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