UBS Layoffs: UBS Itself Trapped In Bailing Out Credit Suisse? Forced To Fire So Many Thousand Employees

Credit Suisse UBS Deal: Credit Suisse, one of Europe’s oldest banks, has become the biggest victim of the latest banking crisis 2023 that started in America. Later, the Swiss government intervened and it was acquired by UBS. Now it appears that UBS itself has run into a new crisis in the process of bailing out Credit Suisse. This Swiss bank is being forced to lay off thousands of employees.

Many people will lose their jobs

According to a Bloomberg report, UBS is planning to lay off 35,000 Credit Suisse employees. This is more than 50 percent of its employees. Credit Suisse had about 45,000 employees before it was devastated by the banking crisis. After the intervention of the Swiss government, another major bank, UBS, agreed to buy the troubled Credit Suisse.

This is how the deal was done

The government prepared a rescue package of 109 billion Swiss francs, or $120.82 billion, for this deal. Under the deal, UBS agreed to buy Bank Credit Suisse for $3.25 billion. In fact, governments and banking regulators in many countries, including Switzerland, were troubled by the Credit Suisse crisis. If it is not resolved quickly, it could worsen the banking crisis.

Experts were already afraid of this

However, when the deal between UBS and Credit Suisse was in the works, many analysts feared massive layoffs. He said many of the business activities of UBS and Credit Suisse overlap. Now it seems that his apprehension is proving true. However, UBS has not officially released any information about the potential layoffs.

At present the number of employees of UBS

After the Credit Suisse deal, UBS’s total workforce has grown to around 1.2 lakh. 37,000 of them are in Switzerland. Bloomberg says layoffs at UBS could happen in three phases. The first layoff may take place in July, while the second and third layoffs are expected to take place in September and October this year.