UBS to reduce costs by $10B by cutting 3000 Swiss jobs

After acquiring Credit Suisse, UBS Group intends to eliminate 3,000 jobs in Switzerland in order to save over $10 billion in costs.

A backlash in Switzerland is anticipated as a result of the job losses that will follow UBS's announcement that it would keep Credit Suisse's domestic bank.

The largest wealth manager in the world could have separated the operation and listed it on the stock market, but Credit Suisse's domestic bank has been a reliable source of profits; in fact, it was the only division that generated a profit last year.

A full integration was the best result for UBS, its stakeholders, and the Swiss economy, according to a statement from Sergio Ermotti, Chief Executive of UBS.

He stated in a memo to the staff that the integration of Credit Suisse's domestic bank would result in the loss of 1,000 jobs and that Credit Suisse's need for a significant reorganization would result in the loss of 2,000 additional jobs.

UBS shares increased 5% during morning trading, reaching records last seen in 2008.

By the end of 2026, cost savings of over $10 billion are expected, compared to an earlier prediction of $8 billion by 2027. The majority of savings should be realized by cutting staff.

If UBS wants to pull off the Herculean deal, keeping its current Credit Suisse clients is crucial.

The second quarter saw the highest net new money for UBS's global wealth management in more than a decade at $16 billion.

Opportunities and risks have been presented to UBS by the shotgun marriage to its defunct rival at the Swiss government's request—the first-ever merger of two globally significant and systemically important banks.