2023-06-27 14:07:45 ET
Three months after its government-orchestrated rescue, UBS Group ( NYSE: UBS ) is planning to axe over half of Credit Suisse Group's ( NYSE: CS ) staff starting in July, Bloomberg reported Tuesday, citing people familiar with the matter.
Among those bearing the brunt of the layoffs include bankers, traders and support staff in Credit Suisse's ( CS ) investment bank in New York, London and in some parts of Asia, the people said, adding that two more round of job exits have been tentatively planned for September and October.
The move comes as UBS ( UBS ) has said it seeks to save $6B in employee expenses over the coming years. When the UBS-CS deal closed , UBS's headcount jumped to about 120K. Headcount at CS stood at ~45K.
As such, the total combined headcount is expected to fall by about 30%, or 35K people, two of the people told Bloomberg .
UBS gained 1.7% in mid-afternoon trading.
Culling of staff isn't limited to just the Swiss lenders. Investment banking giants like Morgan Stanley ( MS ), Goldman Sachs ( GS ) and Citigroup ( C ) have shed thousands of staff in recent months amid a slowdown in M&A activity. To a lesser extent, JPMorgan ( JPM ) earlier this week reportedly cut 40 dealmakers in North America.
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Credit Suisse reportedly seeks buyers for China brokerage business
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UBS, Swiss government sign loss protection pact for Credit Suisse acquisition
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Credit Suisse repays $113B government-backed lifeline - report
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UBS plans on shedding over half of Credit Suisse staff - report