Tens of thousands of bankers working at Credit Suisse are planned to be laid off.

Up to 30 percent of employment at Swiss banks UBS and Credit Suisse are reportedly to be cut.

In a story published in the Swiss newspaper Tages-Anzeiger, referring to a senior UBS manager, it was claimed that UBS’s “urgent” takeover of Credit Suisse with state support would cost tens of thousands of jobs.

TENS OF THOUSANDS OF BANKERS MAY BE FIRED

The news stated that 20 to 30 percent of the 120,000 jobs in the 2 banks should be eliminated.

In the news, which said layoffs at UBS and Credit-Suisse may be imminent, it was reported that approximately 11,000 people may lose their jobs in Switzerland alone, but there will be layoffs at US investment banking, which will be shut down. .

While the crisis of confidence in Credit Suisse created shock waves in global financial markets, UBS announced that it would buy Credit Suisse for 3 billion francs on March 19 with state and central bank support for up to $260 billion.

UBS announced that former chief executive officer (CEO) Sergio Ermotti would return to work 1.5 weeks after he “urgently” bought rival Credit Suisse with government help.

In Europe, banks came under pressure after the AT1 bond, a subordinated debt instrument with a face value of 16 billion francs ($17.3 billion) in the deal between UBS and Credit Suisse, was liquidated.

A blow to the RELIABILITY OF SWITZERLAND

The Credit Suisse bailout caused volatility in European markets as bank bond prices came under pressure. The deal, designed with government assistance to help ensure global financial stability, raised concerns about the size of a new bank with $1.6 trillion in assets.

Analysts say Credit Suisse’s decline has dealt a severe blow to Switzerland’s credibility as “the world’s leading wealth management center”, casting doubt on the country’s reputation for regulation and corporate governance.

According to Deloitte’s 2021 research, Swiss financial institutions manage $2.6 trillion in international assets, making the country the world’s largest financial center ahead of the United Kingdom and the United States.

THE WEALTH FUND IN NORWAY WANTS A MANAGEMENT CHANGE

Separately, in a statement on the Norwegian Wealth Fund’s website, Investment Management of Norges Bank, which manages the Norwegian Wealth Fund, at the bank’s annual general meeting on April 4, Credit Suisse Group AG Chairman Alex Lehmann, and 6 others He stated that he would vote against the re-election of the director.

“Shareholders should have the right to request board changes when the board is not acting in their best interest,” the statement said. It was said.

Norges Bank Investment Management is opposing the re-election of Alex Lehmann, as well as Credit Suisse directors Iris Bohnet, Christian Gellerstad, Shan Li, Seraina Macia, Richard Meddings and Ana Pessoa. (AA)