UBS Group has cut about 200 jobs in London as it nears the end of its integration with Credit Suisse. The layoffs were announced internally in recent weeks and affected various units, including wealth management and investment banking, according to sources familiar with the matter. A spokesperson for UBS declined to comment on the job cuts.
Key Details
Some employees affected by the layoffs are being offered new roles within the bank. UBS is trying to lessen the impact on staff. The bank's workforce grew to nearly 120,000 after acquiring Credit Suisse more than three years ago. However, it has since decreased by about 18%. Reports suggest that UBS plans to cut its combined headcount by around 30%, but the bank has not confirmed specific details about its workforce plans.
These job cuts come alongside changes to UBS's pay structures. This year, junior investment bankers in Europe, the Middle East, and Africa received smaller pay increases when promoted to associate. UBS's Chief Executive Officer Sergio Ermotti has led the integration process, which includes data migration and job cuts. He has stated that the integration should be complete by the end of 2026.
Background
UBS is also in talks with the Swiss government about future capital requirements for its foreign operations. Regulators want to increase the capital the bank holds in these units. The outcome of these discussions could affect UBS's operational strategy going forward.
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The job cuts may influence investor sentiment towards UBS, especially in the banking sector, as the integration of Credit Suisse continues. Investors will closely monitor updates on UBS's capital requirements and any further workforce changes as the integration wraps up.
Based on reporting by: swissinfo.ch, businesstimes.com.sg