UBS to cut 3,000 jobs to save costs after taking over Credit Suisse: Report 

After acquiring its struggling rival Credit Suisse, UBS announced on Thursday that it will eliminate 3,000 jobs in Switzerland alone as part of a $10 billion cost-cutting program.

The newly-expanded bank giant’s intention to eliminate one in every twelve Swiss positions provides a sense of the magnitude of the restructuring as UBS struggles to merge a rival that collapsed after terrified customers withdrew billions from their accounts.

The majority of savings are anticipated to come from personnel reductions, and analysts predict that between 30,000 and 35,000 jobs might be lost internationally.

The layoffs come after the largest wealth manager in the world chose to absorb Credit Suisse's local branch, which was its only successful division last year, rather than split it off, as UBS also thought about doing.

“Our analysis clearly shows that a full integration is the best outcome for UBS ... and the Swiss economy,” UBS Chief Executive Sergio Ermotti told Reuters.

3,000 Swiss positions would be lost, according to a memo from Ermotti to the workforce, although more workers are likely to leave on their own, perhaps through retirement. Credit Suisse had previously reported that 8,000 individuals left the bank in recent months, before Thursday’s layoffs, so the actual number could be far higher.

In contrast to an earlier estimate of $8 billion by 2027, the UBS forecast more than $10 billion in cost reductions by the end of 2026.

The cuts, disclosed alongside the first financial figures published since the acquisition, led to UBS shares rising six per cent in late afternoon trade, reaching highs not seen since 2008.

UBS, which has a market value of 77 billion Swiss francs, has also expressed optimism about its near-term prospects. Rich clients’ attitudes are improving, and the firm anticipates that better financial markets will increase the amount it earns through fees.

However, there is controversy in Switzerland over the choice to acquire Credit Suisse’s local unit. Swiss pension funds and foundations that owned stock in both banks, represented by proxy adviser Ethos, said that a spinoff would have prevented “a major systemic risk for Switzerland, an important negative impact on employment, and issues for the fair competition.”

Ethos has supported a class-action lawsuit that is suing UBS for the buyout at a lower price.

(With inputs from Reuters)

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