UBS looks to axe 30% of staff and keep Credit Suisse's domestic business - source

UBS is weighing cutting tens of thousands of jobs following its emergency takeover of Credit Suisse, as the Swiss bank leans towards keeping the domestic operations of its fallen rival, according to a person familiar with the discussions.

UBS could axe around 30 per cent of its combined workforce, which has expanded to 120,000 following the state-brokered rescue earlier this year, that person told Reuters on Wednesday.

UBS declined to comment, while Credit Suisse did not immediately respond to a request for comment.

Credit Suisse’s investment bank, back office, and its Swiss retail bank will bear the brunt of the bloodletting, with at least 7,000 jobs to go in Zurich alone, the person said.

Such plans indicate that UBS wants to absorb Credit Suisse’s domestic business, streamlining operations and cutting costs in the process, a controversial decision which could trigger concerns about the bank’s domestic market dominance.

Relationship managers overseeing large client accounts as well as corporate bankers in Switzerland are likely to be less affected by the cull, the person added.

If implemented, the total job cuts would amount to more than 30,000. Total job losses could reach 35,000, Bloomberg News reported on Tuesday.

Earlier this month, UBS Chief Executive Sergio Ermotti warned of painful decisions about job cuts following the takeover of Credit Suisse, but provided no numbers.

Reuters reported last week reported that UBS will cut Asia investment banking jobs at Credit Suisse next month, with significant reduction in investment bankers covering Australia and China.

UBS completed its emergency takeover of embattled rival Credit Suisse in June, forging a Swiss banking and wealth management giant with a $1.6 trillion balance sheet and overseeing more than $5 trillion in assets.

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