Following the acquisition of Credit Suisse (CS) by UBS, concerns have grown over substantial job cuts in Switzerland, particularly as both banks have long competed for the same clients in overlapping regions and business areas. Since mid-2023, targeted staff reductions have occurred both domestically and internationally, with UBS recently announcing a workforce reduction of approximately 9,000 employees within the last year. The total headcount now stands at 110,000, down from 119,000.
A significant portion of these cuts have occurred outside Switzerland, particularly within the investment banking sector of the former CS in London and New York. According to UBS, the integration of its investment bank is largely complete, with many investment bankers either laid off or leaving voluntarily as UBS shifts its focus toward asset management.
UBS has already achieved 45% of its $13 billion savings target, aiming for a 15% return on capital by 2026. To reach this goal, further deep reductions in personnel costs are anticipated, potentially lowering the workforce to around 92,000 employees by the end of 2026.
In Switzerland, 3,000 job cuts are planned over the coming years, with a focus on reducing the number of branches, particularly those of CS. The overall impact on jobs will also depend on the integration of IT systems and the migration of CS customers to the UBS platform, a process expected to continue until the end of 2026.
As UBS continues its restructuring, CS employees are reportedly at a disadvantage, with many more at risk of being laid off compared to their UBS counterparts. Despite UBS's claims that it is retaining the best talent from both banks, the perception remains that CS staff are bearing the brunt of the job cuts.
The first social plans for those affected are now expiring, and many former CS employees are turning to unemployment services. The ongoing integration of CS into UBS's operations is likely to dominate the bank's agenda for the foreseeable future.
