A Massive Bank Is Now Planning Fresh Layoffs

April 22, 2024

A massive bank is now planning fresh layoffs as it seeks to trim its headcount at several of its departments, according to sources.

UBS said it aims to save around $6 billion in staff costs in the future.

UBS is gearing up for another wave of job cuts as the Swiss banking giant continues to streamline its workforce after acquiring Credit Suisse, Bloomberg reported Wednesday.

The upcoming job cuts are expected to impact more than a hundred positions across the firm’s global investment banking division, people familiar with the matter told the publication, asking for anonymity due to the sensitive nature of the information.

This reduction in force, which goes beyond routine, performance-based terminations, is slated for the coming weeks.

Additionally, job losses are anticipated in the wealth management and markets units, another source told the wire service.

However, decisions related to the timing of these cuts are not final and can change, Bloomberg reported.

A UBS spokesperson declined to comment to Bloomberg.

The emergency takeover of Credit Suisse last March substantially increased UBS’s global workforce by around 45,000, bringing its total headcount to approximately 120,000 employees.

Last June, the lender announced it planned to cut roughly 30% of its workforce, or around 35,000 employees, by October, which could include more than half its former rival’s headcount.

Employees were told to watch for three rounds of layoffs last year.

Credit Suisse’s investment bank, back office and retail bank were to face the most reductions, a person familiar with the matter told Reuters.

In January, UBS axed a group of senior investment bankers and let go of staff across its private wealth and investment banking units in Asia, according to Bloomberg.

The Zurich-based bank has said it aims to save approximately $6 billion in staff costs in the coming years.

UBS decided to absorb Credit Suisse’s Swiss unit into its own rather than spinning it off and embarked on a complex integration and restructuring process.

UBS Chairman Colm Kelleher cautioned in November that the bank is bracing for a challenging 2024 as it navigates the complexities of the post-merger integration process.

He said the bank has already made significant progress in the “easy part” of reducing headcount as part of the integration efforts.

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Also Read: A Massive Bank Now Freezes Money From Direct Deposits

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This massive bank is now closing more branches in Pennsylvania according to new data from the Office of the Comptroller of the Currency.

The latest bank branch closures in Pennsylvania are only part of a broader national trend.

Between 2017 and 2021, nearly 7,000 bank branches, or 9% of all branches closed, reports AS.

This decline in physical banking facilities has led to “banking deserts,” areas where access to traditional banking services is increasingly limited.

TD Bank has advised that it will be closing a total of four new branches in Pennsylvania:

3760 FAIRVIEW STREET BETHLEHEM
256 SOUTH YORK ROAD HATBORO
4309 SKIPPACK PIKE SKIPPACK
ROMA CORPORATE CENTER ALLENTOWN

Most of the branches currently being shut are typically found in cities where another location exists, leaving customers with an office in case they require in-person assistance, reports AS.

For example, Bank of America is closing a branch in San Marcos, Los Angeles, and Anaheim, all home to additional locations.

However, the National Community Reinvestment Coalition highlights that branch closures can lead to a decrease in small business lending, an increase in reliance on less regulated financial services, and the loss of important commercial entities and job opportunities in affected communities.

Big banks such as PNC Bank and JPMorgan Chase filed for closing several of their branches in multiple states last year amid a troubling pattern of rising branch shutdowns over the several past years.

“This trend raises crucial questions about the future of banking, particularly for vulnerable and elderly customers who may find themselves disproportionately affected by these changes,” says Ash Jurberg.

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Also Read: Retirees Will Now Receive More Money For Social Security

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