UBS AG is preparing to cut more than half of Credit Suisse’s work force and about 35,000 or 30% of the combined staff of the two banks next month now that the merger deal has closed, according to a Bloomberg report citing people familiar with the bank.
Credit Suisse employs about 45,000 staff and the combined banking group employed about 120,000 when the merger deal closed.
The job cuts will take place in three rounds starting in July, the report said.
Investment bankers, traders, and support staff in London, New York and parts of Asia will see the majority of the job cuts, the report said.
A UBS spokesperson declined to comment in an email to MarketWatch.
U.S.-listed shares of UBS
UBS,
were up by 1.6% Tuesday afternoon.
The move had been expected as UBS signaled it would vastly scale back Credit Suisse’s business when it closed its acquisition of its ailing Swiss rival earlier this month.
Also Read: UBS completes takeover of Credit Suisse as job cuts loom
UBS is expecting to book a one-time gain of nearly $35 billion in what’s been described as a take-under acquisition involving government intervention.
The changes come amid layoffs in the banking business overall as deal-making has dwindled partly because of rising interest rates and a higher cost of capital.
Also Read: Megabanks are cutting jobs in 2023 following a year in which they had to ‘grab any human being they could’
