UBS to cut 3,000 jobs after Credit Suisse takeover
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UBS is set to merge with Credit Suisse, resulting in an extensive transformation of the Swiss banking industry, which will consequently lead to the elimination of numerous job positions.
UBS Group announced a profit of $29.3 billion (£22.8 billion) in the period from April to June, marking its initial financial outcomes following the acquisition of its faltering competitor.
The impressive earnings, in contrast to the $2.6 billion recorded in the corresponding period last year, showcases a singular surge credited to Credit Suisse.
However, the combined bank will reduce its workforce by 3,000 employees in the upcoming years as it seeks to decrease expenses by over $10 billion.
In March, UBS came to the aid of Credit Suisse by providing financial support of $3.25 billion. This assistance was prompted by strong insistence from authorities who were concerned about the possibility of Switzerland's second largest bank collapsing due to significant client withdrawals.
Credit Suisse encountered numerous issues and banking breakdowns in the United States, causing a significant loss of trust and compelling the company to search for a purchaser.
UBS has declared its intention to completely incorporate Credit Suisse's local banking operation, which was profitable in the previous year, instead of separating it and forming an independent entity.
"Our examination unequivocally demonstrates that a complete assimilation is the most favorable result for UBS, our interested parties, and the economy of Switzerland," stated CEO Sergio Ermotti.
The incorporation is scheduled to happen in the following year, and the entire transfer of customers is expected to be finalized by 2025, he further mentioned.
