UBS Group AG shares rose 1.2% on Friday after media reports said the Swiss bank cut several hundred jobs across Europe, the Middle East and Africa as part of ongoing integration work related to its acquisition of Credit Suisse.
Sources indicated the job eliminations were concentrated in support functions, although a number of client-facing bankers were also among those affected. The reports said some staff whose positions were removed were offered alternative roles within the firm.
A UBS spokesperson told reporters the bank aims to keep cuts "as low as possible" in Switzerland and around the world. The spokesperson also said the bank is prioritizing bringing roles currently outsourced to third-party providers back in-house as a way to reduce overlapping positions.
Since the Credit Suisse takeover, UBS has cut roughly 17,500 jobs, according to the most recent figures cited. Earlier reporting noted the bank had initially planned for about 35,000 reductions following the deal.
The acquisition of Credit Suisse in 2023 added about 45,000 employees to UBS’s payroll, increasing the combined headcount to nearly 120,000. As part of integration efforts, UBS has sold certain units and removed duplicate positions.
People familiar with the matter said additional job reductions are expected to take place through the second half of the year.
Summary
UBS reported several hundred job cuts across EMEA tied to its Credit Suisse integration. Cuts largely hit support functions while some client-facing bankers were also affected. The bank has reduced its workforce by about 17,500 since the takeover and indicated further reductions are likely later in the year.
Key points
- UBS shares rose 1.2% on Friday after reports of job cuts across Europe, the Middle East and Africa.
- The reductions mainly targeted support functions, though some client-facing bankers lost roles; some affected employees were offered other positions within UBS.
- UBS’s overall headcount has fallen by roughly 17,500 since the Credit Suisse acquisition, which had increased staff by about 45,000 and brought total headcount to nearly 120,000.
Risks and uncertainties
- Additional workforce reductions are expected through the second half of the year, creating continued uncertainty for employees and operations in affected regions - this impacts the banking and employment sectors.
- Efforts to move roles in-house from third-party providers may not fully prevent redundancies and could affect vendor relationships and operational models - this impacts operations and vendor management within financial services.
- The scale and timing of remaining cuts were not specified, leaving open questions about the pace of integration and potential effects on client coverage - this affects investment banking and client-facing services.
This article is based solely on the information provided in reports and statements referenced above.