The bad news just seems to keep coming for beleaguered financial firm Credit Suisse. UBS Group, the bank’s new owner, is planning to reduce its manpower component by more than 50% next month.
Among those most likely to be affected by the chop are bankers, support staff, as well as traders in Credit Suisse’s offices in London and New York, as well as in several Asian nations. This is bound to have an adverse effect on the bank’s operations.
This does not mean, however, that UBS did not warn Credit Suisse staff beforehand. Just last week, the company announced that it would reduce the number of investment banking jobs at Credit Suisse’s Asian offices in July, effectively reducing the number of bankers handling Australia and China.
UBS chief executive Sergio Ermotti likewise remarked that a workforce reduction at Credit Suisse was in the offing following the UBS Group’s takeover. Ermotti, however, declined to give details about the total number of pending layoffs.
Insiders say that UBS plans to gradually reduce its total workforce – including those employed in new acquisitions like Credit Suisse – by around 35,000 or at least 30%. As of press time, neither the UBS Group nor Credit Suisse have made statements confirming the matter.
UBS finalized its acquisition of its longtime rival earlier this month. The combined banking entity now has a combined workforce of around 120,000 employees worldwide and a balance sheet worth $1.6 trillion.