“There will be hard cuts!”

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UBS’s new boss, Sergio Ermotti, 62, addressed employees ahead of Credit Suisse’s takeover by UBS: There will be changes and tough cuts, Ermotti said in a message to CS employees on Thursday.

Ticino took over as CEO from Ralph Hamers (57) the day before the general meeting. A week ago, the Board of Directors surprisingly appointed him as the new CEO.

“There will be synergy”

Regarding the first letter reported by Reuters news agency, “While it is too early to speculate on what the joint venture will look like, rest assured that we will treat all employees at both CS and UBS fairly.”

Vice Chairman of the Board Lukas Gähwiler (56) said the previous day at the UBS General Assembly that it is too early to speculate on things: “First of all, both banks should continue and integrate in the coming years. This is a Herculean task that will require more people, not less, in the short run. It is clear that in the medium term we will need to weigh up the various options. Gähwiler, who worked at Credit Suisse between 1990 and 2009, said: “It’s clear that there will be synergies in the long run as well.”

Uncertainties are great

Although CS has been stabilized, there is still a great deal of uncertainty before the transaction is complete. Therefore, we want to finalize this as soon as possible. “This will take a few weeks at best, but probably a few months. You need some rest for that. A lot of well-meaning suggestions about what else can be done tend to create unnecessary uncertainty,” said Gähwiler. (pbe/SDA)

Source :Blick