UBS to continue workforce job cuts following Credit Suisse acquisition

Investing.com — UBS Group AG (NYSE:) is set to continue reducing its workforce following its historic acquisition of Credit Suisse, said CEO Sergio Ermotti in an interview to Bloomberg. The Swiss lender is aiming to cut an additional $5.5 billion in costs, on top of the $7.5 billion already saved since the acquisition. Ermotti acknowledged that the cost-cutting measures will inevitably lead to redundancies, but expressed a preference for relying on voluntary departures when possible.

The UBS workforce expanded significantly from below 75,000 to approximately 120,000 after the acquisition of Credit Suisse in an emergency government-brokered operation nearly two years ago. Since then, the number has decreased by about 10,000. UBS has not yet set a target for the total headcount.

The bank also plans to make significant savings by discontinuing the use of Credit Suisse’s old IT systems. A major part of this process, shifting client data in its home market of Switzerland, is planned for this year.

Ermotti noted that about 7% of UBS employees leave the company voluntarily each year. He also pointed out that many employees are nearing retirement, which could potentially lessen the impact of forced job cuts.

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