UBS Group AG readies for next round of Credit Suisse job cuts. The plan is to trim about 10% of support staff from compliance, risk, and marketing areas. The reductions are scheduled to commence next month.
As per reports, Credit Suisse job cuts will initiate on November 6.
But when approached by Bloomberg News, a UBS spokesperson refrained from commenting.
As the restructuring process unfolds, there has been a mute about any specific details regarding the extent of Credit Suisse job cuts.
The bank’s Chief Executive Officer, Sergio Ermotti, previously indicated that Credit Suisse layoffs would count up to 3,000 positions. All the positions will phased out over the coming years in Switzerland.
These reductions are anticipated to commence in the late stages of 2024 or the early months of 2025.
Mass Credit Suisse job cuts in a year
As of the end of the previous year, based on corporate filings, the combined workforce for UBS and Credit Suisse in Switzerland would have amounted to roughly 39,000 individuals.
Additionally, Ermotti had previously indicated the potential for further headcount reductions, focusing on voluntary departures to achieve this.
On a global scale, Credit Suisse job cuts removed approximately 8,000 employees. They have already departed since the year’s start, as Ermotti reported.
This significant departure was partially instigated by cost-cutting efforts initiated by Credit Suisse before its acquisition by UBS. Subsequently, UBS has expedited the implementation of these measures.
Notable departures in Southeast Asia after UBS takeover
Recently, a noteworthy development unfolded within Credit Suisse. With ongoing layoffs, Credit Suisse continues to impact the bank, with numerous staff departing.
Specifically, some of the bank’s bankers specializing in private financing within the Southeast Asia region have chosen to depart.
Their departure adds to the ongoing cut-offs in the wake of the acquisition by Swiss rival UBS Group AG.
Two prominent bankers who have departed Credit Suisse are managing directors.
These executives are Chwee Sing Koo, responsible for trading, and Junwei Wu, overseeing structuring for Southeast Asia and frontier markets.
This information comes from anonymous sources who chose to remain undisclosed due to the confidential nature of the matter.
Their exit reflects the ongoing trend of departures within the bank, attributed mainly to organizational changes and job cuts in the aftermath of the UBS takeover.
These six departing bankers belong to the APAC Financing Group, which focuses on serving ultra-high-net-worth individuals, entrepreneurs, and institutional clients within the Asia-Pacific region.
This division is responsible for offering services in trading, risk management, structuring, and syndication specific to the Asia-Pacific market, as outlined on the bank’s official website.
Amid a series of departures, another notable exit occurred last month. Serene Seah, who previously held the position of director at the APAC Financing Group, chose to move on and has since joined OCP Asia Ltd. as a senior portfolio manager.
This career transition is reflected on her LinkedIn profile, indicating the ongoing shifts within Credit Suisse and the finance industry in the Asia-Pacific region.
Rise in US Bank job cuts amid economic resilience
The largest US bank job cuts have been undertaken throughout this year, a somewhat discreet but continuous process. There are even more significant cutbacks on the horizon.
This trend has persisted despite the economy’s ability to defy expectations with its resilience.
Several banks have either implemented staff reductions or have publicly disclosed their intentions to do so.
JPMorgan Chase, the United States’ most substantial and profitable financial institution, is a notable exception to this trend.
These workforce adjustments unfold after a two-year hiring surge prompted by the COVID-19 pandemic.
This period saw a substantial increase in hiring across Wall Street, driven by a notable upswing in financial activity.
As a result of mounting pressure stemming from various factors, such as the influence of elevated interest rates on the mortgage sector, Wall Street deal-making dynamics, and increased funding costs, the five most significant US banks have collectively eliminated around 20,000 positions during this year, as reported in their official company filings.