A huge wave of layoffs is imminent at Credit Suisse, which has been acquired by UBS. The Swiss bank plans to cut more than half of its acquired workforce starting in July. This was reported by sources to the Bloomberg news agency. According to business physician and Themis Company partner Anton Wiggers, this will have far-reaching consequences.
That would be about 45,000 jobs, Wiggers knows. He points out a huge number of layoffs, which will mostly fall among bankers, merchants and support staff. “Around the world you have to think about locations in London, New York and Asia,” says Wiggers. “These three areas are the most mentioned.”
‘It affects around 45,000 jobs in London, New York and Asia’
With the layoff, more and more Credit Suisse DNA is being lost within UBS, and that’s hardly unusual, says Wiggers. “Normally, in an acquisition you can choose to keep a brand intact, but with Credit Suisse it didn’t make much sense,” he says. “Especially given the scandals they’ve had, such as stock market manipulation and money laundering cases, or faulty internal control.” According to Wiggers, this has led to a brand that is no longer worth anything, “so we have to try to optimize the workforce.”
Cut
And that’s where significant cuts can be made due to duplication of employment. According to Wiggers, both banks were mostly located in the same locations and both companies had the same staff. “So they’re no longer needed,” he says. “Then we look at the business model, because that will also change.”
Wiggers believes UBS will tackle certain tasks at a smaller scale and focus more on automation. ‘This means that systems are displacing people, and that means that forceful action can and should be taken.’
Settle down
The risky strategy used by Credit Suisse in the past may also play a role. ‘They had already had to postpone the annual accounts, at the request of the US regulator SEC’, continues Wiggers. “They don’t do it at all. They lost $7.3 billion and investors who lost confidence took $87 billion last quarter.”
Wiggers says not only has liquidity gone out the door, but so has confidence. “And that’s really disastrous for a bank.” Although in line with expectations, he concludes. “The people who are still here have been really lucky.”
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
