Massive Bank Layoffs Have Consequences Despite Low Unemployment
Published: Monday, Aug 14th 2023, 10:40
Updated At: Friday, Oct 13th 2023, 14:12
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The integration of Credit Suisse into UBS is set to cause a massive job loss in the banking sector. While the current economic climate is favourable, with a low unemployment rate and a shortage of skilled workers, the situation will still be difficult for many affected bank employees. It is estimated that 10,000 jobs in Switzerland and 30,000 to 35,000 worldwide will be lost by the end of 2022. Despite this, the banking sector is currently enjoying a favourable interest rate environment and is looking forward to increasing profits, according to the latest survey by the KOF Institute of Economics at ETH Zurich. The Swiss Bank Employees Association (SBPV) is concerned about the potential job losses, particularly for long-term and older employees, despite social plans with extended notice periods. If affected employees have to switch to another industry, they may face a significantly lower wage level and corresponding restrictions in their standard of living. Many Credit Suisse employees have already taken matters into their own hands and are looking for new jobs. UBS CEO Sergio Ermotti has already stated that up to 10% of Credit Suisse employees have left the bank in the past few months. Competitors are also looking to hire Credit Suisse employees, particularly customer advisors with a portfolio of wealthy customers and specialized investment bankers. The job losses will be spread out over a longer period of time, and the Swiss State Secretariat for Economic Affairs (SECO) does not expect the UBS merger to have an impact on the unemployment rate. The Regional Employment Centers (RAV) are prepared for the job losses, and UBS will provide more information on their plans and job losses when they publish their half-year results on August 31.nnnnnnnn
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