UBS Group AG is set to significantly reduce Credit Suisse Group AG's workforce by over 50% in the coming month following the emergency takeover of the bank.
The cuts will primarily affect bankers, traders, and support staff in Credit Suisse's investment bank, particularly in London, New York, and certain regions in Asia. As reported by knowledgeable sources, nearly all activities are at risk of being affected by the impending job cuts.
According to AdvisorHub, staffers at the Swiss bank have been told to expect three rounds of cuts this year, with the first expected by the end of July and two more rounds tentatively planned for September and October.
With the deal's completion, UBS's workforce expanded to approximately 120,000 employees, but the bank aims to achieve savings of around $6 billion in staff costs over the next few years. According to sources, UBS plans to reduce the combined headcount by roughly 30%, equivalent to approximately 35,000 employees. This reduction aligns with the estimated workforce reduction of around 30,000 predicted by Redburn analysts in their recent report on UBS. The reduction in staff at Credit Suisse is expected to dramatically worsen what was already a dismal year for financial sector jobs worldwide.
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