UBS CEO "Integration with CS by 2026... 3,000 Job Cuts"

[Image source=Reuters Yonhap News]

Swiss largest bank UBS, which acquired the global investment bank (IB) Credit Suisse (CS), announced that it will fully integrate the two banks by 2026. Along with this, it also announced a plan for layoffs involving approximately 3,000 employees.

According to major foreign media on the 31st (local time), Sergio Ermotti, CEO of UBS, held a press conference at the Zurich headquarters to announce the business performance and stated this plan. He said, "The goal is to save more than $10 billion (about 13.2 trillion KRW) in costs through the integration of the two banks."

UBS signed the acquisition contract for CS on March 19. The acquisition price was $3.25 billion (about 4.3 trillion KRW). Even after gaining management control of CS, UBS has maintained the CS bank brand. This policy will be maintained until the integration process is completed. UBS expects the integration to be completed by 2026.

CEO Ermotti anticipated that about 3,000 employees would be laid off during the integration process. He said, "We will minimize the impact on employees" and "Financial support and retraining opportunities will be provided to those subject to layoffs."

Meanwhile, UBS recorded a net profit of $29.2 billion (about 38.6 trillion KRW) in the second quarter. UBS's operating profit last year was $7.6 billion (about 10 trillion KRW). The profit made in the second quarter of this year, which is nearly four times last year's annual operating profit, is interpreted as due to an accounting issue caused by a sharp increase in asset value following the acquisition of CS. On the other hand, CS recorded a pre-tax loss of $10.1 billion (about 13.3 trillion KRW) in the second quarter of this year.

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