Up to 150 layoffs worldwide every day: why are Credit Suisse employees running out of work?

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For coffee, activate the network and update the CV. This is what most of the approximately 50,000 Credit Suisse employees worldwide are currently working on. They also need to maintain the operation of a major global Swiss bank. In many departments, projects have been put on hold, at least until the takeover of UBS has been approved by all authorities. That should be the case in the next few days, weeks at the latest.

There is only one area that has its hands full: HR. Because up to 150 terminations per day should reach HR managers in CS all over the world. An almost unbelievable number that can be explained, first of all, by the great uncertainty of many CS employees about their professional futures. Those who can go and don’t expect UBS to register needs for dying CS workers.

Numerous layoffs outside Switzerland

Officially CS is not commenting on this number – but in the interview the bank is trying to make it look a little smaller. However, two independent sources from CS gave Blick the number of approximately 150 layoffs per day worldwide. It was even more so at peak times.

One thing is clear: The volatility in the bank is now significantly higher than in the spring weeks of the previous year – that is when the crisis in CS was a little less pronounced and the recovery from UBS was far away. Layoffs reach HR departments almost every hour in the Asia-Pacific and America regions, especially in investment banking.

predict fate

This is not surprising, given that UBS has declared its intention to shut down CS’ risky investment banking. It is also unclear which markets the bank will withdraw from under UBS auspices, because despite all efforts, the business is no longer worthwhile.

From an employee perspective, it makes a lot of sense to go willingly before many people get the blue letter at the same time. Because without layoffs, the takeover of CS by UBS would not be possible.

It is not clear how many resignations come from Swiss employees each day. However, in Switzerland, adherence to traditional CS is likely to be significantly higher than in other regions. On the other hand, we read almost every day that entire wealth management teams are moving to another bank – with the absolute intention of taking the clients they serve with them.

While CS doesn’t want to say anything specific about the layoffs, there are some indications that there will be a big wave of departures. About the tension on the executive floor of UBS. Iqbal Khan (47), head of global wealth management at UBS, has threatened quite frankly in an internal incident: Anyone who leaves now will never have to apply for new UBS again.

Prevent CS from destabilizing

Others at the management level of UBS are more relaxed, letting them know that sometimes those who are leaving now are not the best, but those who think they don’t have much of a chance at the new UBS. It would be very convenient for UBS to say goodbye to as many CS employees as possible now. So the bank would have to report less, the public anger would be less, so maybe the calculation.

UBS, on the other hand, is not dealing with a destabilizing wave of layoffs. Even after the takeover CS still needs to work for a while, full integration can take up to four years. That’s why CS hires new people every day, a spokesperson said. For example, in asset management, finance or operations with permanent employment contracts as is common in the industry.

Source :Blick