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June 28, 2010 UBS (UBSG.S) is cutting tens of thousands of jobs as the Swiss bank moves to keep its failed rival’s domestic operations. Discussions.
UBS could use up to 30 percent of its combined workforce, which has swelled to about 120,000 following a government-led bailout earlier this year, the person told Reuters on Wednesday.
UBS and Credit Suisse declined to comment.
Credit Suisse’s investment bank, back office and Swiss retail bank will bear the brunt of the bleeding, with at least 7,000 jobs remaining in Zurich, the person said.
Such plans indicate that UBS is seeking Credit Suisse’s domestic business, streamlining operations and cutting costs in the process, a controversial decision that could threaten the bank’s domestic market dominance.
Relationship managers who handle large client accounts and corporate banks in Switzerland will be less affected by the crisis, the person said.
If implemented, the total job cuts would exceed 30,000. Total job losses could reach 35,000, Bloomberg News reported Tuesday.
The Swiss Bankers’ Association did not comment on the registered numbers, but reiterated its concerns about the impact of the bank’s plans.
“The major changes in the financial center will change the face of Switzerland,” he said in a written response to a Reuters comment.
“After more than 3 months, doubts and frustrations are growing, also due to such media reports,” the association said, calling on UBS to cooperate with its social partners on solutions that would ensure financial market stability.
The union has previously called on UBS to “absolutely” go ahead with the job cuts.
Earlier this month, UBS CEO Sergio Ermotti warned of dire job cuts after taking over Credit Suisse, but gave no numbers.
Reuters reported last week that UBS will cut Asian investment banking operations at Credit Suisse next month, with significant cuts at investment banks covering Australia and China.
UBS ended its bailout of rival Credit Suisse in June, creating a Swiss banking and wealth management giant with a $1.6 trillion balance sheet and more than $5 trillion in assets.
(Reporting by Tomasz Janowski. Editing by Oliver Hirt and Noelle Illien.)
Our Standards: The Thomson Reuters Trust Principles.
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