Two weeks after the emergency takeover of Credit Suisse by UBS, a Swiss newspaper quantifies a possible imminent job cuts, citing business circles. Between 20 and 30 percent of the jobs of the combined UBS-CS should be eliminated, reported the "Tages-Anzeiger" on Sunday, citing a high-ranking UBS manager. In Switzerland alone, up to around 11,000 jobs could be cut, the newspaper reported. But also in US investment banking, which is to be shut down, many jobs would be lost. However, this also applies to all other divisions.

Together more than 120,000 employees

The question of how many employees will be laid off quickly arose when the spectacular news was officially announced that UBS was taking over Credit Suisse (CS). For many employees, the takeover is a nightmare.

Together, UBS and CS have 124,500 employees. In the end, up to 25,000 jobs could be lost, whether through layoffs and early retirement or through the sale of businesses. This figure can be derived indirectly from the cost reductions of 8 billion dollars that UBS wants to achieve by 2027. The majority of this is attributable to the reduction of personnel costs.

Significant cuts in area

Most recently, Ralph Hamers, CEO of UBS, said that there were also opportunities for growth. Together with UBS, Credit Suisse's 50,000 employees also have a new future. "Together we can build an even more beautiful bank." In the ears of CS employees, this sentence may sound like mockery, especially if they work in Switzerland.

Because in the home market of the two major banks, their overlaps are greatest. Credit Suisse has 17,000 employees in the Swiss Confederation, UBS 22,000. According to estimates, it is conceivable that 10,000 to 12,000 jobs will be cut, with the union and works council certainly pressing for the cuts to be spread over as long a period as possible.

On the one hand, considerable staff cuts are to be expected in the area. There are both UBS and CS branches in 72 Swiss cities; a double presence will not be worthwhile in many cases. On the other hand, many double-staffed functions in central administration and IT will be eliminated from now on. Client advisors have the least to worry about in asset management. They should keep their existing clients as close as possible, now for the benefit of UBS.