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UBS acquires Credit Suisse. Thousands of jobs under question

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The fate of thousands of jobs in London is in jeopardy after the unexpected merger of Swiss banks UBS and Credit Suisse, writes the British newspaper The Guardian. So far, none of the institutions has yet specified how the ownership transformation will affect the employees. In unofficial conversations with the newspaper, however, the bank’s managers admit that some reductions must be made. They are supposed to be the most severe for people dealing with investment banking.

Credit Suisse said on Thursday morning that it would borrow up to 50 billion Swiss francs from the National Bank Switzerland as part of the so-called “decisive action” aimed at increasing its liquidity. Credit Suisse shares lost a quarter of their value last week.

On Sunday, the Swiss authorities announced that UBS Bank would take over Credit Suisse. The problems of Credit Suisse, a global bank, have deepened the turmoil in the global financial sector after the recent collapse of the US Silicon Valley Bank.

Will there be layoffs?

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The turmoil in the banking market will also be of great importance to people employed in Swiss institutions. The banks have not yet announced what their merger could mean for more than 5,000 businesses. Credit Suisse employees and approx. 6 thousand. employed at UBS in London.

In unofficial conversations with the newspaper, however, the bank’s managers admit that some reductions must be made. They are supposed to be the most severe for people dealing with investment banking. According to the newspaper’s informant from Credit Suisse, in the other departments of the banks 20% will lose their jobs. employed.

“We are not sure what this merger will mean for us. We only know that there will be fewer jobs in our industry. In this environment, we all complete our CVs – says one of the employees.

Conflicting messages

In a press release regarding the merger, UBS said the bank merger would save $8 billion in operating costs by 2027. This statement contrasted with that issued by Credit Suisse, which read that “UBS has declared that the employment of Credit Suisse employees will be maintained”.

Main photo source: Brookgardener / Shutterstock.com



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