Switzerland's Biggest Bank UBS Likely To Layoff 36,000 Employees Globally After Credit Suisse Merger

If the already rising number of mass layoffs by tech giants and other organizations around the globe weren't enough, the banking sector turmoil seems to be adding to the miseries.

First Silvergate bank and SVB Bank, then Signature Bank and Credit Suisse, the global banking sector is witnessing back-to-back collapses.

UBS To Layoff Upto 36,000 Employees

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And now, it's being reported that the rescue deal that led to the merger between Switzerland¡¯s biggest bank UBS and its rival Credit Suisse could see up to 36,000 jobs being cut across the world. Credit Suisse had already announced plans to lay off 9,000 employees later last year.

The takeover by UBS of Credit Suisse was hastily arranged by the Swiss government on March 19 to prevent a global financial meltdown, following fears of contagion from the collapse of banks in the United States.

Earlier last week, UBS had announced that it would bring back former CEO Sergio Ermotti to handle the huge risks involved in the Swiss banking giant's rescue deal to absorb its troubled rival Credit Suisse.

And yesterday, i.e. on Sunday, citing internal anonymous sources, SonntagsZeitung weekly, as per AFP report, said management was mulling cutting between 20%-30% of the workforce, meaning between 25,000-36,000 jobs.

Up to 11,000 jobs could be cut in Switzerland alone, according to the weekly. Before the merger, UBS and Credit Suisse had employed slightly more than 72,000 and 50,000 people respectively.

Also Read: UBS-Credit Suisse Merger Puts The Future Of 14,000 Indian Employees In Jeopardy

"Huge Risk In Integrating These Banks"

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UBS and Credit Suisse were both among the select banks around the world considered to be global systemically important financial institutions (G-SIFIs) and therefore deemed too big to fail.

UBS chairman Colm Kelleher reportedly said last week: "There's a huge amount of risk in integrating these businesses."

Credit Suisse was embroiled in a series of scandals in the years leading up to a March 15 share price collapse of 60%, when investor confidence plunged following two back-to-back bank failures in the United States.

Credit Suisse, which was Switzerland's second-biggest bank, was also fined $2 million in a money laundering case linked to a Bulgarian cocaine network. Click here to read more about it.

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