As the UBS acquisition of Credit Suisse “merger of the century” advances, a fierce “big layoff” may come.
On Sunday, the media reported that UBS will cut 20-30% of its workforce after the acquisition of Credit Suisse, cutting up to 36,000 jobs worldwide, including up to 11,000 jobs in Switzerland.
By the end of last year, the two institutions employed nearly 125,000 people, with Switzerland accounting for about 30 percent of the total.
This forecasted number of job cuts is a significant increase from the 9,000 job cuts announced last month, and given the significant overlap created by the combined businesses, one would expect the final cuts to be several times that number.
In addition, from a business perspective, the merger of UBS and Credit Suisse may not necessarily have a 1+1>2 effect on their core wealth management business. Due to compliance requirements in some countries and regions, UBS and Credit Suisse's wealth management business may shrink as a result of the merger
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