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UBS is preparing to cut more than half of Credit Suisse’s workforce starting next month. The Bloomberg agency reports it, citing some sources, according to which there should be three rounds of cuts this year, one by the end of July and another two in September or October. The cuts are the result of UBS’s emergency takeover of Credit Suisse.
Cuts starting in July
The drastic restructuring for Credit Suisse will start in July, with draconian cuts that will effectively halve the number of employees of the Swiss banking giant. The reductions reflect the emergency buyout just three months ago when UBS bought out Credit Suisse in a deal engineered by Swiss authorities.
UBS acquires Credit Suisse with support from the Swiss government
Bankers and traders at Credit Suisse’s investment bank in London, New York and parts of Asia will bear the brunt of the cuts, according to rumors reported by the Bloomberg news agency. UBS has told staff it expects three rounds of cuts this year, one by the end of July and two in September and October.
About 35,000 jobs to be cut
UBS’s goal would be to reduce by 30%, around 35,000 jobs, the total workforce of 120,000 employees resulting from the marriage between the two giants.
Sector in crisis
The cuts being worked on by UBS worsen an already difficult picture for employment in the global financial sector.