UBS to cut 30% of its jobs after its acquisition of Credit Suisse

The Swiss daily newspaper Tages-Anzeiger said, quoting an unnamed senior UBS manager, that the entity resulting from the bank’s acquisition of Credit Suisse will reduce the workforce by about 20 to 30 percent.

UBS agreed to buy rival Credit Suisse for 3 billion Swiss francs ($3.3 billion) in a deal managed by the Swiss government, central bank and market regulator to avoid a collapse in the country’s financial system, according to Reuters.

But the deal, which also aims to help secure global financial stability, has raised concerns about the size of the new bank, whose assets will reach $1.6 trillion, with more than 120,000 employees around the world.

The newspaper report stated that the bank may cut 11,000 jobs in Switzerland

Jobs in the bank’s investment banking unit in the United States will also be affected, the report said, adding that UBS intends to hold talks to cancel a deal that would have given banker Michael Klein control of most of the investment unit of Credit Suisse.