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 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.
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 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.
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.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Swiss Exchange SIX Partners with Dubai Financial Market for Dual Listings
Hannelé De Necker, CEO, IFX Brokers | FMAS:24
Hannelé De Necker, CEO, IFX Brokers | FMAS:24
1 week to go until FMAS:24 kicks off and we couldn't skip our interviews with some of this year's sponsors 🤩 Starting off strong with Hannelé De Necker, CEO OF IFX Brokers.
See you there!
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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1 week to go until FMAS:24 kicks off and we couldn't skip our interviews with some of this year's sponsors 🤩 Starting off strong with Hannelé De Necker, CEO OF IFX Brokers.
See you there!
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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FMAS:24 | Sneak Peak
FMAS:24 | Sneak Peak
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa