Credit Suisse (Image: X.com/Credit Suisse)
Sergio Ermotti, UBS Chief Executive Officer says that “we’re going to have to take some proactive actions in redundancies in years to come” and that, “will have around 3000 jobs that will be made redundant over the next years.”
Mr. Ermotti was speaking on job cuts that would come about as a result of the integration of Credit Suisse and UBS.
While talking to
“>Bloomberg Television, he said, it was “very difficult, to do a restructuring, the deep restructuring necessary at credit Suisse and extracting the synergies without going through people and headcount” he also added that they were “counting a lot on natural attrition, retirements and internal mobility and shifting also our permanent to external account ratio, to take some proactive actions in redundancies in the years to come”.
He said 1000 jobs would be redundant, in relation to the decision to integrate, and a 2000 because of the need of restructuring. He further added that “it is good and we are lucky that we have a very healthy labour market in Switzerland” and that “according to the Switzerland Association of employers in the banking industry, there are more than 6000 jobs open.” This, he had said would be the job cuts in Switzerland alone though he did not name a number to the total number of jobs that would become redundant. He also added that the restructuring was initiated since the beginning of the year by Credit Suisse, recognising the need of restructuring, and that the integration was just taking it forward to the second quarter.
On the job ratio in labour market, he stressed that it was not a one for one profile, but a healthy ratio; the company would also help the “people affected with financial, retraining and reskilling” to address this matter of job cuts.
Credit Suisse, a leading global investment bank and financial services bank was integrated into the UBS and the legalities of this merger are expected to close in the year 2024. The acquisition was in part a rescue action as Credit Suisse was falling under loss. The merger was complete in June this year.
The controversial job cut plans were let out after the integration. The UBS also announced its second quarter income statement. The second quarter profits are “$28.88 billion in its first quarterly earnings since Switzerland’s largest bank completed its takeover of stricken rival Credit Suisse,” reported CNBC. The UBS will absorb, hold the clients, customers and will keep-up Credit Suisse’s client confidence as part of the integration plan. As market share prices of UBS has gone up and analysts see this as a positive happening, reported NDTV.
