As many as 11,000 jobs could disappear in Switzerland

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It has been clear since last Wednesday that Sergio Ermotti (62), CEO of the new UBS, should manage the integration of the two major Swiss banks. While the Ticino native won’t formally take office until Wednesday, plans for initial downsizing are already circulating, leading to fears of a clear cut in the Swiss financial centre.

According to a senior UBS executive, the new UBS targeted layoffs of between 20 and 30 percent. Based on the approximately 120,000 full-time jobs that UBS and Credit Suisse have employed to date, this translates to 25,000 to 36,000 jobs worldwide, the Sunday newspaper wrote. Because the takeover needs a lot of synergy for it to really benefit UBS. This means that many positions to double in the new bank have to disappear. This is the only way to finance the expensive liquidation of the CS investment bank.

Branch network and IT affected

The layoffs will primarily affect investment banking in the US, but many jobs in Switzerland will also be laid off as a result of integration. Between 7,400 and 11,100 jobs will be affected in Germany. Even if the optimistic scenario materializes, there will be significantly more layoffs than the savings program announced by CS prior to the merger. CS wanted to lay off about 2,000 people in Switzerland. The two major banks currently employ around 37,000 people in Switzerland. 21,000 people work for UBS and 16,000 people for CS.

Many jobs can be lost in Switzerland, especially in the branch network but also in IT. Because the two banks have 75 locations each with CS and UBS branches. Also, only one IT system will be needed to manage client funds in the medium term. (co)

Source :Blick