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UBS to Cut Majority of Jobs at Credit Suisse From Next Month
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UBS Group AG (UBS - Free Report) is planning to cut more than half of Credit Suisse’s 45,000-strong workforce starting next month, per a Bloomberg article.
Sources familiar with the matter said that bankers, traders and support staff at Credit Suisse’s investment bank in London, New York, and in certain regions of Asia will bear the consequences of these job cuts.
UBS Group AG, with the emergency takeover of Credit Suisse, stated that it intended to save around $6 billion in staff costs. Two sources familiar with the matter elucidated that UBS is likely to reduce the total combined headcount by approximately 30% or 35,000 people.
Per a source, UBS informed its staff to expect three rounds of job cuts in the current year. The first round of cuts is most likely to take place by the end of July, with the other rounds tentatively planned for September and October.
Nonetheless, UBS Group AG plans to retain majority of Credit Suisse’s private bankers. In the Asia Pacific region, it is planning to keep approximately a few hundred of Credit Suisse’s private bankers leading to a total of more than 1,200.
Further, per a source familiar with the matter, UBS has to retain, at least in the near term, those responsible for managing Credit Suisse’s structured loans to wealthy clients and the equity derivatives books.
The elimination of such jobs by UBS are likely to reduce expenses and help navigate adverse market conditions that cause pressure on top-line growth.
UBS Group AG’s shares have gained 5.8% on the NYSE over the past six months compared with the industry’s rise of 5.2%.
UBS Group AG is not the only one to trim workforce. Finance firms, including TheGoldman Sachs Group, Inc. (GS - Free Report) and Citigroup (C - Free Report) , have been taking similar steps in their investment banking (IB) divisions.
GS is eliminating more than 30 IB positions in the Asia region to survive the current uncertain economic conditions. The company's Global Banking & Markets division has witnessed the majority of the regional job cuts.
C is also likely to cut 30 IB jobs and 20 more in its corporate banking unit in London. Per a person familiar with the matter, the cuts are necessary to reduce its cost base as the bank navigates adverse market conditions.
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UBS to Cut Majority of Jobs at Credit Suisse From Next Month
UBS Group AG (UBS - Free Report) is planning to cut more than half of Credit Suisse’s 45,000-strong workforce starting next month, per a Bloomberg article.
Sources familiar with the matter said that bankers, traders and support staff at Credit Suisse’s investment bank in London, New York, and in certain regions of Asia will bear the consequences of these job cuts.
UBS Group AG, with the emergency takeover of Credit Suisse, stated that it intended to save around $6 billion in staff costs. Two sources familiar with the matter elucidated that UBS is likely to reduce the total combined headcount by approximately 30% or 35,000 people.
Per a source, UBS informed its staff to expect three rounds of job cuts in the current year. The first round of cuts is most likely to take place by the end of July, with the other rounds tentatively planned for September and October.
Nonetheless, UBS Group AG plans to retain majority of Credit Suisse’s private bankers. In the Asia Pacific region, it is planning to keep approximately a few hundred of Credit Suisse’s private bankers leading to a total of more than 1,200.
Further, per a source familiar with the matter, UBS has to retain, at least in the near term, those responsible for managing Credit Suisse’s structured loans to wealthy clients and the equity derivatives books.
The elimination of such jobs by UBS are likely to reduce expenses and help navigate adverse market conditions that cause pressure on top-line growth.
UBS Group AG’s shares have gained 5.8% on the NYSE over the past six months compared with the industry’s rise of 5.2%.
Image Source: Zacks Investment Research
UBS carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here
UBS Group AG is not the only one to trim workforce. Finance firms, including The Goldman Sachs Group, Inc. (GS - Free Report) and Citigroup (C - Free Report) , have been taking similar steps in their investment banking (IB) divisions.
GS is eliminating more than 30 IB positions in the Asia region to survive the current uncertain economic conditions. The company's Global Banking & Markets division has witnessed the majority of the regional job cuts.
C is also likely to cut 30 IB jobs and 20 more in its corporate banking unit in London. Per a person familiar with the matter, the cuts are necessary to reduce its cost base as the bank navigates adverse market conditions.