Back in early April, it was speculated that up to a third of all jobs of the enlarged business could be axed. Stories from several sources this week have added a few more details to the mix.
UBS is reported to be planning tens of thousands of job cuts following its takeover of rival Credit Suisse, and will favour keeping the domestic Swiss operations of the bank. Such stories, if true, confirm what was rumoured, as far back as early April, days after the momentous SFr3 billion ($3.4 billion) deal was announced.
Reuters, citing an unnamed source, said that UBS could cut as many as 30 per cent of the combined workforce, which has reached 120,000 following the state-backed rescue in March.
The news service said both banks declined to comment.
Credit Suisse's investment bank, back office, and its Swiss retail bank will bear the brunt of the cuts, the newswire said. At least 7,000 jobs are due to go in Zurich alone – a big hit to the country’s main financial capital.
The report said that UBS wants to absorb Credit Suisse's domestic business, which is controversial because it means that UBS is now the sole universal bank in the Alpine state.
The report added that relationship managers overseeing large client accounts as well as corporate bankers in Switzerland are likely to be less affected by the cull, the person added.
A separate report by Bloomberg on Tuesday said that as many as 35,000 jobs in total could go.
UBS is due to report its second-quarter financial results on 31 August.
As part of the deal, conducted at the urging of the Swiss authorities, holders of Credit Suisse’s Additional Tier 1 bonds – forms of buffer capital created for European banks after the 2008 crash – have had their bonds written down. This has sparked anger and a number of lawsuits, including from institutions such as PIMCO.