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Major bank Credit Suisse was not only harmed by a substantial outflow of funds. It is also facing a wave of employee confusion. But despite the uncertainties, some employees chose to stay in the accident bank acquired by UBS.
“The market was flooded with resumes from CS employees,” a bank expert told AWP news agency. “Those who can, go. But some key executives choose to stay because they know CS needs them.” But the fear of not knowing what the next day will bring is certainly there.
If you leave, you must repay the bonus.
LM (renamed) is a manager at Credit Suisse. He’s not looking for another position – at least not right now. “If I leave now, I’ll lose a large portion of my 2022 bonus,” says the president of an international team at AWP.
Credit Suisse employees undertake to stay at the bank for three years after receiving their bonus. Otherwise, they have to pay back the entire amount received. “Poaching banks in the US are prepared to pay the lost bonus,” LM said. In Switzerland, however, this practice is less common.
“Furthermore, if I stay, I can defend my employees’ positions better than anyone else,” says LM, who is directly involved in the ongoing integration process. “Like many of my colleagues, I don’t think merger is the best solution, but I do believe it can offer opportunities.”
great insecurity
LM notes that there is a “very competitive” environment among CS employees due to uncertainty about what jobs will be eliminated in the merger. “A lot of information is hidden, everyone wants to present themselves in the best possible way.”
AW (name changed) also prefers to wait for concrete announcements about layoffs before applying elsewhere. “After the acquisition announcement there was a lot of uncertainty and we didn’t know if we were going to stop working on new projects.”
In the meantime, however, the situation has improved a bit, AW said. “We have now given the green light for further development of new projects and we are looking for new employees.” In other departments, however, the situation is different: “Significantly more” employees left the company, especially in asset management.
Escape to private banks
It is difficult to measure the height of the output wave. But regular reports that other banks are hiring individual employees or even entire teams from Credit Suisse provide a clue.
Of the nearly 50 client advisors hired by Zurich-based private bank EFG in the first quarter of 2023, 30 to 40 percent came from Credit Suisse. “There will be more to come,” VR President Alexander Classen said in an interview with “Le Temps” newspaper.
Kellerher attacks investment bankers
Wealth manager Julius Baer gave an indirect clue: The number of “relationship managers” has increased by nearly 40 recently, “partially favored” by industry turbulence.
First of all, UBS wants to downsize the Credit Suisse investment bank. As UBS President Colm Kelleher said at a WSJ event in London recently, the situation is “out of control”.
One thing is for sure: the “smart marriage” between Credit Suisse and UBS will create massive repetition and cost a lot of work. Speculation abounds, as the UBS leadership has not yet commented on the amount of layoffs, for understandable reasons.
Speculation about layoffs
At the end of 2022, the two banks had a total of 123,000 full-time equivalents. In Switzerland, about 21,000 employees at UBS and about 16,000 at Credit Suisse are on the payroll.
The “Sonntagszeitung” was the first to issue a number to the public in early April: 20 to 30 percent of jobs would be laid off. This means 25,000 to 36,000 jobs worldwide. The latest report comes from Inside Paradeplatz: UBS will cut 6,700 jobs in Switzerland alone, according to the financial portal. According to an insider quoted there, not much more should remain from the big traditional CS than the online bank CSX. The rest will be integrated into UBS.
CS employees awaiting information about their future at the new big bank will need to be patient. UBS is looking to complete the acquisition in the coming weeks. However, the full integration of the two banks may take three to four years. (SDA/koh)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
