The UBS, a Swiss bank, is set to make significant job cuts and early retirements starting from January. This development has raised concerns in the financial sector as the year comes to an end. According to a recent report by the Financial Times (FT), global banks have already eliminated over 60,000 jobs in recent months.
Interestingly, unlike previous banking crises in 2015 and 2019, it is not the European financial giants that have made the deepest job cuts this time. Instead, it is the overseas banks such as Wells Fargo, Citigroup, Morgan Stanley, Bank of America, and Goldman Sachs that have taken the lead. The four major US banks occupy positions 2 to 6 in the job cuts ranking for 2023.
However, the top spot for job cuts in 2023 goes to Switzerland, specifically the UBS. The UBS has already eliminated around 13,000 positions as part of its takeover of Credit Suisse (CS), according to the reputable business publication. As of the end of September, the newly merged UBS had a total of 116,000 employees across all continents, with approximately one-third, or around 35,000, working in Switzerland.
It is predicted that the UBS may retain its top position in the job cuts ranking for 2024 as well. The CEO, Sergio Ermotti, has indicated that 2024 will be a pivotal year for the takeover, and analysts expect thousands more jobs to be cut in the coming months, as reported by the FT.
The UBS aims to save 10 billion dollars in expenses, and since up to 70% of costs are attributed to salaries and bonuses, significant job reductions are inevitable. By the end of the integration process with Credit Suisse, the combined UBS workforce worldwide could fall below 100,000 employees. If the actual number exceeds this, it is likely due to the integration of many independent contractors who have been working exclusively for UBS or CS.
In Switzerland, job security at the last remaining major bank does not look promising. Many former Credit Suisse employees can expect to be laid off starting from January, or they may be given the “opportunity” to retire early. CEO Ermotti recently stated that they will do their best based on the principle of meritocracy, as mentioned in an interview with the Swiss newspaper “Le Matin Dimanche.”
It remains unclear whether this means that the old UBS did not always prioritize the best employees but rather the smartest or those who were most adept at navigating the internal hierarchy. Regardless, one thing is certain: the UBS is now embarking on a significant job reduction process.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇨🇠🇺🇸 |
| Sentiment | very negative |
| Relevance Score | 1 |
| People | Sergio Ermotti |
| Companies | Morgan Stanley, Wells Fargo, Citigroup, Bank of America, Goldman Sachs |
| Currencies | None |
| Securities | None |
