UBS Group (NYSE:UBS) will now fire 35,000 Credit Suisse employees early as next month.
The dramatic cut is slashing more than half of the distressed bank’s workforce.
Bankers, traders and support staff in Credit Suisse’s investment bank in London, New York, and in some parts of Asia are expected to bear the cuts with almost all activities at risk, people familiar with the matter said.
Staffers have been told to expect three rounds of cuts this year, with the first expected by the end of July and two more rounds strategically planned for September and October, the people added, asking not to be named as the plans aren’t public, per Fortune.
Three months after UBS agreed to buy Credit Suisse in a government-brokered rescue, the full extent of the job cuts is starting to become clear. UBS, whose combined workforce jumped to about 120,000 when the deal closed, has said it aims to save some $6 billion in staff costs in the coming years.
UBS intends to ultimately reduce the total combined headcount by about 30%, or 35,000 people, two of the people said. That’s broadly in line with an overall reduction of around 30,000 estimated by analysts at Redburn in a report on UBS this month.
Headcount at Credit Suisse currently stands at about 45,000, the people said.
A spokesperson for UBS declined to comment on the job exits.
However, Chief Executive Sergio Ermotti earlier this month warned of painful decisions about job cuts following the takeover of Credit Suisse.
“We won’t be able to create, short term, job opportunities for everybody. Synergies is part of the story,” Ermotti said at an event organized by the Asset Management Association Switzerland in Bern.
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Banks Worldwide Continue to Cut Jobs
Goldman Sachs (NYSE:GS) is beginning a new round of layoffs at the managing director levels across the globe according to people familiar with the matter.
The bank layoffs are part of a plan to cut costs which has already seen three rounds of cuts this year so far.
“About 125 managing directors, including some in investment banking, will lose their jobs,” a person was quoted as saying.
JPMorgan (NYSE:JPM) will close 21 First Republic Branches amidst the bank’s latest layoffs.
Reuters reports JPMorgan will close these 21 branches by the end of the year.
The locations account for about a quarter of First Republic’s 84 branches across eight states.
The lender, which was the largest to collapse since the 2008 financial crisis, was seized by regulators in May and sold to JPMorgan.
“The cuts are a further blow to First Republic employees, who have already had a challenging two months.
Since the takeover, First Republic employees have been left in the dark about their future with the company.
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