UBS Group CEO Sergio Ermotti has confirmed that the bank will continue to reduce its workforce as it strives to achieve substantial cost savings following its landmark acquisition of Credit Suisse. Speaking at the World Economic Forum in Davos, Ermotti revealed plans to cut an additional US$5.5 billion in expenses, building on the US$7.5 billion already saved since the merger.

The acquisition, brokered by the Swiss government nearly two years ago to stabilize the country’s financial sector, caused UBS’s workforce to balloon from fewer than 75,000 to around 120,000 employees. The bank has since reduced its headcount by approximately 10,000 but remains committed to further reductions to streamline operations.

“We aim to rely on voluntary departures and natural attrition as much as possible,” Ermotti said, highlighting that about 7% of employees leave UBS annually due to retirement or other reasons. He acknowledged, however, that some redundancies are “inevitable” as the bank seeks to balance efficiency with a human-centered approach.

A significant portion of UBS’s projected US$13 billion in total savings is tied to technological integration. The bank plans to phase out Credit Suisse’s legacy IT systems, with a major milestone expected this year as it migrates client data in Switzerland. Ermotti emphasized that these technological upgrades are critical to streamlining operations and reducing long-term costs.

The job reductions come amid broader challenges for global financial institutions grappling with regulatory pressures, economic uncertainty, and the rapid pace of technological change. Ermotti underscored the importance of these measures, stating that they are essential for ensuring UBS’s competitiveness and resilience in a dynamic banking environment.

Despite the emphasis on cost-cutting, UBS has indicated its intention to provide support to employees affected by the restructuring. The bank has previously focused on internal redeployment and assistance for those leaving the organization.

The integration of Credit Suisse represents one of the most significant transformations in UBS’s history. While the path to full consolidation is complex, Ermotti remains optimistic that the steps taken today will position UBS for sustainable growth in the future.

As the bank progresses with these changes, its ability to navigate workforce reductions while maintaining operational excellence will be critical. Investors and stakeholders alike will be closely watching UBS’s execution of this strategy in the months ahead.