UBS to lay off thousands of Credit Suisse employees
Swiss banking giant UBS is bracing for layoffs after taking over Credit Suisse. The giant bank will lay off more than half the employees of Credit Suisse, which has 45,000 employees, next month.
The segments that will be most affected by the wave of layoffs will be bankers, processors and support staff. Employees of Credit Suisse branches in London, New York and some Asian regions will be the most affected by this wave.
THERE WILL BE 3 SEPARATE WAVES OF RELEASES
There will be three separate waves of layoffs this year, according to sources who requested anonymity because the plans have not yet been made public. It is stated that the first wave is expected to take place at the end of July, while the other two tours are planned in September and October.
Three months after UBS bought Credit Suisse in a government-brokered bailout, the full extent of the layoffs began to become clear.
When the deal was completed, UBS’s total workforce rose to nearly 120,000, and the company said it aims to save about $6 billion in personnel costs over the next few years.
YOU WILL FIND 35 THOUSAND PEOPLE
UBS is believed to eventually plan to reduce its total workforce by around 35,000 people. UBS spokesmen decline to comment on the layoffs for now.
After Wall Street investment banks including Morgan Stanley and Goldman Sachs announced they were laying off thousands of their employees, the fact that UBS is starting to lay off staff shows that things are getting worse for the global financial sector.
WHAT HAPPENED?
After the banking crisis that started in the US in March, there was a panic at Credit Suisse in Europe. Events after the Saudi National Bank, Credit Suisse bank’s largest partner, announced it would not raise its capital, brought the bank to the brink of bankruptcy.
Switzerland’s largest bank, UBS, bought 167-year-old Credit Suisse for 3 billion francs, with government liquidity support of 200 billion francs.
While the total number of UBS and Credit Suisse employees reached 120,000 worldwide, UBS announced that it would make layoffs to cut costs.