Months after completing its acquisition of competitor Credit Suisse, UBS Group AG is laying off hundreds of employees in Asia as a response to weak customer demand and China’s faltering economy, according to a report by The Economic Times.

According to the sources familiar with the matter, the largest bank in Switzerland has recently slashed some redundant posts and more are anticipated through November.

Relationship managers will be among the posts that will be eliminated by the lender in Singapore and Hong Kong, most of them in teams that have just been purchased from Credit Suisse, according to the sources. They said that the number of cuts has not yet been decided. According to one of the sources, the lender intends to keep the majority of its private bankers in Australia and India for the time being.

In the Asia-Pacific area, where Singapore and the regional commercial capital of Hong Kong have traditionally served as booking hubs for China’s ultra-wealthy, UBS is fighting low consumer demand and activity levels. The region’s profit before tax for the wealth management division decreased by 9 per cent in the second quarter compared to the same period last year.

On Monday, UBS shares gave up early gains and were trading at 22.73 Swiss francs ($25.493) in Zurich at 11:18 a.m.

As pandemic precautions and a real estate crisis impacted the nation, the second-largest economy in the world grew by 3 per cent last year, one of its weakest rates of expansion in decades. After it finally reopened, there was some optimism that China might rebound this year. However, the recovery has stalled, and the benchmark stock index is on pace to post losses for a third consecutive year.

After acquiring Credit Suisse in June, UBS has set huge integration goals for its former rival, including the elimination of 3,000 domestic jobs and the achievement of cost savings of more than $10 billion.

The headcount cuts coincide with those made by major banks like Barclays Plc and Goldman Sachs Group Inc. According to Bloomberg, as part of the layoffs, Barclays aims to fire around 5 per cent of the client-facing employees in the trading sector as well as certain dealmakers globally.

The smaller Swiss company was acquired by Zurich-based UBS after an emergency government-brokered deal for 3 billion Swiss francs ($3.4 billion).&nbsp;

In a wager on the region’s valuable clients, Bloomberg had earlier reported that Asia could be designated as one of the regions to be spared significant cuts. According to information from Asian Private Banker, UBS had 850 private bankers in the region at year’s end, compared to 580 for Credit Suisse.

Yet, even senior bankers were leaving steadily. According to the record maintained by the Monetary Authority of Singapore, Gautam Anand, a managing director in Singapore who was hired from Credit Suisse last year, is no longer employed by UBS. He began working with UBS in January as part of initiatives to improve services for the affluent diaspora of India.

Moreover, Martin Loh of Credit Suisse, Joe Lau, the market group head for China, as well other bankers have recently left Hong Kong.

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Months after completing its acquisition of competitor Credit Suisse, UBS Group AG is laying off hundreds of employees in Asia as a response to weak customer demand and China’s faltering economy, according to a report by The Economic Times.

Months after completing its acquisition of competitor Credit Suisse, UBS Group AG is laying off hundreds of employees in Asia as a response to weak customer demand and China’s faltering economy, according to a report by The Economic Times. According to the sources familiar with the matter, the largest bank in Switzerland has recently slashed some redundant posts and more are anticipated through November. Relationship managers will be among the posts that will be eliminated by the lender in Singapore and Hong Kong, most of them in teams that have just been purchased from Credit Suisse, according to the sources. They said that the number of cuts has not yet been decided. According to one of the sources, the lender intends to keep the majority of its private bankers in Australia and India for the time being. In the Asia-Pacific area, where Singapore and the regional commercial capital of Hong Kong have traditionally served as booking hubs for China’s ultra-wealthy, UBS is fighting low consumer demand and activity levels. The region’s profit before tax for the wealth management division decreased by 9 per cent in the second quarter compared to the same period last year. On Monday, UBS shares gave up early gains and were trading at 22.73 Swiss francs ($25.493) in Zurich at 11:18 a.m. As pandemic precautions and a real estate crisis impacted the nation, the second-largest economy in the world grew by 3 per cent last year, one of its weakest rates of expansion in decades. After it finally reopened, there was some optimism that China might rebound this year. However, the recovery has stalled, and the benchmark stock index is on pace to post losses for a third consecutive year. After acquiring Credit Suisse in June, UBS has set huge integration goals for its former rival, including the elimination of 3,000 domestic jobs and the achievement of cost savings of more than $10 billion. The headcount cuts coincide with those made by major banks like Barclays Plc and Goldman Sachs Group Inc. According to Bloomberg, as part of the layoffs, Barclays aims to fire around 5 per cent of the client-facing employees in the trading sector as well as certain dealmakers globally. The smaller Swiss company was acquired by Zurich-based UBS after an emergency government-brokered deal for 3 billion Swiss francs ($3.4 billion). In a wager on the region’s valuable clients, Bloomberg had earlier reported that Asia could be designated as one of the regions to be spared significant cuts. According to information from Asian Private Banker, UBS had 850 private bankers in the region at year’s end, compared to 580 for Credit Suisse. Yet, even senior bankers were leaving steadily. According to the record maintained by the Monetary Authority of Singapore, Gautam Anand, a managing director in Singapore who was hired from Credit Suisse last year, is no longer employed by UBS. He began working with UBS in January as part of initiatives to improve services for the affluent diaspora of India. Moreover, Martin Loh of Credit Suisse, Joe Lau, the market group head for China, as well other bankers have recently left Hong Kong. WATCH WION LIVE HERE

UBS cuts jobs in Asia amid slowing activity

The turmoil in the banking sector across the world has led to market upheaval and massive financial losses. Credit Suisse is the latest bank to go kaput. Its share prices started falling on Wednesday and by Sunday, it was sold to its domestic rival UBS for $3.25 billion. While Swiss authorities managed to avert a financial crisis, the decision to merge the two banks will likely have a major impact on jobs in India.

Nearly 14,000 Indian employees working in three Indian cities are at risk of losing their jobs after the merger. Technology centres of both UBS and Credit Suisse in India will likely be dealt a massive blow following the Swiss government-backed takeover.

The technology centres of both the banks employ around 7,000 employees each in three Indian cities, an Economic Times report said. Once the merger is finalised, UBS is likely to focus on cost-cutting measures, and the Indian staff of the two companies is likely to be heavily impacted.&nbsp;Locally known as global in-house centres (GIC), UBS will try to retain only the best of the best at these centres in India.&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/credit-suisse-how-did-the-fall-of-166-year-old-lending-institution-unfold-573930">Credit Suisse: How did the fall of 166-year-old lending institution unfold?</a>

While UBS hasn't released an official figure for job cuts, the number is expected to be huge since the company aims to cut the combined company's annual cost base by more than $8 billion by 2027. The amount is half of Credit Suisse's expenses last year.

Meanwhile, UBS, in a memo, asked employees to continue to see Credit Suisse as a rival bank until the talks are over. They should not divulge any business secrets to their new colleagues, the memo said. “Credit Suisse is still our competitor," UBS CEO Ralph Hamers wrote in a memo to employees.

Further, Credit Suisse urged employees to continue to work as usual despite everything that is happening.&nbsp;

“We know that many of you will have been following the intense media coverage over the past 48 hours on the future of Credit Suisse and appreciate the enormous uncertainty and stress that this has caused," Chairman Axel Lehmann and CEO Ulrich Koerner said in the memo.

“Please note that there is no immediate impact on our clients and on our day-to-day working operations. Our branches and global offices will remain open, and all colleagues are expected to and should continue to come to work."

Credit Suisse said it is identifying which roles can be let go of and “will aim to continue to provide severance in line with market practice."

(With inputs from agencies)

&nbsp;

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The turmoil in the banking sector across the world has led to market upheaval and massive financial losses. Credit Suisse is the latest bank to go kaput. Its share prices started falling on Wednesday and by Sunday, it was sold to its domestic rival UBS for $3.

The turmoil in the banking sector across the world has led to market upheaval and massive financial losses. Credit Suisse is the latest bank to go kaput. Its share prices started falling on Wednesday and by Sunday, it was sold to its domestic rival UBS for $3.25 billion. While Swiss authorities managed to avert a financial crisis, the decision to merge the two banks will likely have a major impact on jobs in India. Nearly 14,000 Indian employees working in three Indian cities are at risk of losing their jobs after the merger. Technology centres of both UBS and Credit Suisse in India will likely be dealt a massive blow following the Swiss government-backed takeover. The technology centres of both the banks employ around 7,000 employees each in three Indian cities, an Economic Times report said. Once the merger is finalised, UBS is likely to focus on cost-cutting measures, and the Indian staff of the two companies is likely to be heavily impacted. Locally known as global in-house centres (GIC), UBS will try to retain only the best of the best at these centres in India. Also Read | Credit Suisse: How did the fall of 166-year-old lending institution unfold? While UBS hasn't released an official figure for job cuts, the number is expected to be huge since the company aims to cut the combined company's annual cost base by more than $8 billion by 2027. The amount is half of Credit Suisse's expenses last year. Meanwhile, UBS, in a memo, asked employees to continue to see Credit Suisse as a rival bank until the talks are over. They should not divulge any business secrets to their new colleagues, the memo said. “Credit Suisse is still our competitor," UBS CEO Ralph Hamers wrote in a memo to employees. Further, Credit Suisse urged employees to continue to work as usual despite everything that is happening. “We know that many of you will have been following the intense media coverage over the past 48 hours on the future of Credit Suisse and appreciate the enormous uncertainty and stress that this has caused," Chairman Axel Lehmann and CEO Ulrich Koerner said in the memo. “Please note that there is no immediate impact on our clients and on our day-to-day working operations. Our branches and global offices will remain open, and all colleagues are expected to and should continue to come to work." Credit Suisse said it is identifying which roles can be let go of and “will aim to continue to provide severance in line with market practice." (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Credit Suisse-UBS merger likely to impact 14,000 jobs in India

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UBS cuts jobs in Asia amid slowing activity

Credit Suisse-UBS merger likely to impact 14,000 jobs in India