UBS will lay off 3,000 employees
The UBS group plans to cut 3,000 jobs in Switzerland in the next few years as part of its plan to save $10 billion in costs after the acquisition of Credit Suisse.
UBS bought Swiss bank Credit Suisse for 3 billion Swiss francs ($3.37 billion) in March as part of a package prepared by the Swiss government, taking on the bank’s debt of $5.4 billion.
UBS has announced that Credit Suisse will keep its local banking unit and expects the layoffs to trigger backlash in Switzerland.
UBS, the world’s largest asset manager, could have turned Credit Suisse’s local banking unit into a separate company and taken it public, but Credit Suisse made a profit on the bank unit last year, making it the only banking unit local bank debt free.
Sergio Ermotti, UBS CEO, explained in his message to employees that there will be 1,000 layoffs as a result of the acquisition of the unit, while 2,000 layoffs will be due to the need for a deep restructuring of Credit Suisse.
UBS shares rose 5 percent in early trading to their highest level since 2008.
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
