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UBS Group AG is planning to cut hundreds of jobs at Credit Suisse as it starts the merger procedure, Swiss weekly HandelsZeitung reported on Friday.
In March this year, UBS decided to take over Credit Suisse for 3-billion-franc ($3.5 billion) after Swiss authorities felt that a weakened Credit Suisse would go bankrupt.
HandelsZeitung said that according to its sources, UBS chief executive Sergio Ermotti wants to rapidly get to work on eliminating the huge amount of duplication in their operations.
Hundreds of investment bankers at Credit Suisse might be laid off in the near future.
“The transformation is beginning: in the coming days several hundred Credit Suisse bankers will receive termination notices,” the Swiss weekly said.
It is to be noted that the Swiss media have speculated about between 30,000 and 35,000 job cuts across the world
At the end of last year, the two banks had around 120,000 employees between them across the world, including 37,000 in Switzerland.
Earlier, UBS had said it will slash jobs across countries to reduce costs and take advantage of synergies.
Credit Suisse-UBS takeover
On June 12, UBS completed the acquisition of Credit Suisse acquisition and the combined entity started working as a consolidated banking group.
UBS sealed the deal in less than three months – a tight timetable given its scale and complexity – to provide greater certainty for Credit Suisse clients and employees and stave off departures.
“This is the start of a new chapter – for UBS, Switzerland as a financial centre and the global financial industry,” UBS CEO Sergio Ermotti and Chairman Colm Kelleher said in an open letter published in Swiss newspapers.
“Credit Suisse Group AG ADS will no longer be traded on the New York Stock Exchange. As announced on 19 March 2023, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held,” the company said in a statement.
The combined group will oversee $5 trillion of assets, giving UBS a leading position in key markets it would otherwise have needed years to grow in size and reach. The merger also ended Credit Suisse’s 167-years of independence.
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