The financial holding company UBS plans to lay off 20% to 30% of its employees after the final takeover of the Swiss bank Credit Suisse. On this subject writing Sonntags Zeitung with reference to sources.
UBS now has only about 120,000 full-time employees, the newspaper notes. Thus, in the event of massive layoffs, the bank could lay off 25,000 to 36,000 employees, while 11,000 people will be laid off in Switzerland.
Bloomberg Agency attracted Please note that in March, prior to the takeover, Credit Suisse planned to lay off only 9,000 employees. “The number of layoffs will be significantly higher than expected,” says SonntagsZeitung.
On March 15, shares of Credit Suisse fell a record 30.8% to CHF 1.55, down 24.2% to CHF 1.7. It comes after Credit Suisse approached the National Bank of Saudi Arabia (SNB) for a backstop loan: the bank faced record losses and publicly admitted to identifying “significant deficiencies” in its financial statements. The SNB refused to financially support Creduit Suisse. A few days later, on March 19, UBS agreed buy Credit Suisse for 3 billion Swiss francs (about $3.2 billion), which was only 40.5% of the market capitalization of Credit Suisse, which fell in trading on the eve of the transaction. Before the takeover of Credit Suisse by UBS, there were fears that the Swiss bank could repeat the fate of Silicon Valley, a US venture capital bank which filed for bankruptcy on March 10.
