UBS to execute five waves of layoffs soon: 60% Credit Suisse employees to bear the brunt

In a bid to streamline operations and slash costs following its acquisition of Credit Suisse, Swiss banking giant UBS is set to initiate a series of layoffs in five phases, commencing in June, according to a report by SonntagsZeitung. 

The comprehensive cost-cutting program, introduced in the wake of the merger, aims to realise substantial savings, with most of the reductions expected to stem from workforce downsizing. UBS, however, refrained from commenting on the specifics of the layoff plan.

The initiative, unveiled in August, outlines UBS's strategy to eliminate approximately one in twelve Swiss jobs and achieve cost reductions exceeding $10 billion. The consolidation comes in the aftermath of Credit Suisse's unravelling, triggered by mass withdrawals from customer accounts during a period of heightened uncertainty. 

Analysts speculate that the global job cuts could range between 30,000 and 35,000 positions.

According to insights from SonntagsZeitung, which cited an unnamed insider, the layoffs are projected to affect 50-to-60% of former Credit Suisse employees across the five waves of downsizing. 

The first phase, slated for June, is anticipated to result in the redundancy of 25-30% of the ex-Credit Suisse workforce. Subsequent rounds are scheduled for August, September, October, and November, with the overall planned savings estimated at 12 billion Swiss francs ($13.2 billion).

The announcement of these layoffs underscores UBS's concerted efforts to optimize its operations and fortify its financial standing in the face of evolving market dynamics. 

As the banking sector navigates through a period of transformation, marked by technological advancements and shifting consumer preferences, UBS's proactive measures reflect its commitment to adaptability and resilience in a rapidly changing landscape.