New megabank UBS needs to recruit new staff first

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First the shareholders fled, then the customers – and now, it seems, the employees. Especially in Asia and the USA. Among other things, this has to do with the Federal Council’s ban on bonuses and the great uncertainty about the future of one’s own business. Shortly before CS is taken over by UBS, it loses valuable information that top bankers would rather take with them to another bank than share it with their new employer.

Research by “SonntagsZeitung” has shown that there will be no layoffs for the time being. On the contrary: UBS and CS even have to employ more staff in the short run. At least as long as the takeover deal has not yet been finalized and the merger has yet to be approved everywhere. Currently, it looks like the deal could be in effect by the end of June. But by then, banks will have to be run twice, and given the upcoming layoffs, there have already been plenty of layoffs around the world, especially in CS.

How bad is CS really?

Credit Suisse will release its first quarter figures on Monday, and UBS on Tuesday. CS is waiting for a scare report due to the large amount of money withdrawn from customers.

The CS may even be in an even worse situation than previously known: “In Switzerland, on an honest account it hardly makes any money, and otherwise, even in the main disciplines of private banking and wealth management,” writes SonntagsZeitung. “.. Therefore, even if CS Switzerland is divided, there will be savings programs in these sectors. A demand voiced by more and more voices.

What can UBS say anyway?

Information is awaited from UBS on what the planned megabank will look like and how many employees will have to leave due to the merger. Initially, we were told that 20 to 30 percent of all jobs would be cut. This means that up to 30,000 jobs worldwide and 11,000 in Switzerland could disappear.

However, these figures are very speculative. Because it is not yet clear how much UBS really knows about the exact status of the bank. UBS will only have full information on the ledgers of the major bank once the deal is closed. And only then can I come up with believable scenarios for how the business and CS people should go on. (SDA/koh)

Source :Blick