UBS' CEO Suggests Massive Job Cuts Loom for Credit Suisse's Investment Banking Division
- The decision is explained by the need to reduce costs.
- However, UBS does not provide exact figures.
UBS has finalized a takeover transaction within three months that was expected to take up to a year. The acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term of Credit Suisse (CS), which found itself on the brink of bankruptcy, proceeded much smoother than anticipated. However, Sergio Ermotti, the CEO of UBS Group AG, warned that the Swiss lender may face massive employment cuts, particularly in the investment banking sector.
UBS Plans 'Massive Downsizing' at Credit Suisse
An article by Ermotti appeared in the Swiss newspaper Tages-Anzeiger on Saturday, summarizing the decision and process of acquiring CS. According to Ermotti, the new UBS will be a bank that all Swiss can be proud of.
However, CS employees may not have reasons to be proud or pleased. According to Ermotti, a 'massive downsizing' awaits them. Although the CEO did not provide exact values or a percentage range, he emphasized that it is necessary from a cost reduction perspective. Earlier, UBS revealed that 10% of employees left Credit Suisse before the acquisition was finalized.
"The task ahead is demanding and takes time, and difficult decisions have to be made. It requires focus, humility and open communication," Ermotti originally commented in Swiss and was translated to English.
Ermotti certainly knows how to cut employment. The bank announced the need to reduce jobs by 36,000 in April before finalizing the CS acquisition. However, the UBS case is no exception. According to Bloomberg data, over 500,000 people have lost jobs in significant economic sectors since last October.
What will happen to the Swiss part of Credit Suisse's business is also unclear. Previously, UBS spoke about plans for full integration of the local branch. However, Ermotti commented that various solutions, including a sale, are being considered. The final decision was to be made by the end of this quarter, leaving less than two weeks.
The acquisition of Credit Suisse was formally closed last Monday. It was within three months after UBS expressed its desire to acquire the bank's assets for $3 billion when on the brink of bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term.
What's Next for Credit Suisse?
Two weeks ago, the Swiss government reached an agreement with UBS to absorb potential losses of up to CHF 9 billion ($10 billion) that the global lender might incur due to its liquidation of rival Credit Suisse's assets.
The government had facilitated UBS's emergency procurement of Credit Suisse in March to avoid a potential banking and economic meltdown in Switzerland. At that point, it pledged its readiness to bear part of any losses arising from the sale of the troubled lender's assets.
Meanwhile, UBS Group AG (UBS) and Credit Suisse Group AG (CS) are maintaining their operations in Singapore without disruption. The Monetary Authority of Singapore (MAS) has confirmed that both banks will continue to operate under separate licenses, preserving their core private and investment banking activities.
UBS has finalized a takeover transaction within three months that was expected to take up to a year. The acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term of Credit Suisse (CS), which found itself on the brink of bankruptcy, proceeded much smoother than anticipated. However, Sergio Ermotti, the CEO of UBS Group AG, warned that the Swiss lender may face massive employment cuts, particularly in the investment banking sector.
UBS Plans 'Massive Downsizing' at Credit Suisse
An article by Ermotti appeared in the Swiss newspaper Tages-Anzeiger on Saturday, summarizing the decision and process of acquiring CS. According to Ermotti, the new UBS will be a bank that all Swiss can be proud of.
However, CS employees may not have reasons to be proud or pleased. According to Ermotti, a 'massive downsizing' awaits them. Although the CEO did not provide exact values or a percentage range, he emphasized that it is necessary from a cost reduction perspective. Earlier, UBS revealed that 10% of employees left Credit Suisse before the acquisition was finalized.
"The task ahead is demanding and takes time, and difficult decisions have to be made. It requires focus, humility and open communication," Ermotti originally commented in Swiss and was translated to English.
Ermotti certainly knows how to cut employment. The bank announced the need to reduce jobs by 36,000 in April before finalizing the CS acquisition. However, the UBS case is no exception. According to Bloomberg data, over 500,000 people have lost jobs in significant economic sectors since last October.
What will happen to the Swiss part of Credit Suisse's business is also unclear. Previously, UBS spoke about plans for full integration of the local branch. However, Ermotti commented that various solutions, including a sale, are being considered. The final decision was to be made by the end of this quarter, leaving less than two weeks.
The acquisition of Credit Suisse was formally closed last Monday. It was within three months after UBS expressed its desire to acquire the bank's assets for $3 billion when on the brink of bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term.
What's Next for Credit Suisse?
Two weeks ago, the Swiss government reached an agreement with UBS to absorb potential losses of up to CHF 9 billion ($10 billion) that the global lender might incur due to its liquidation of rival Credit Suisse's assets.
The government had facilitated UBS's emergency procurement of Credit Suisse in March to avoid a potential banking and economic meltdown in Switzerland. At that point, it pledged its readiness to bear part of any losses arising from the sale of the troubled lender's assets.
Meanwhile, UBS Group AG (UBS) and Credit Suisse Group AG (CS) are maintaining their operations in Singapore without disruption. The Monetary Authority of Singapore (MAS) has confirmed that both banks will continue to operate under separate licenses, preserving their core private and investment banking activities.