UBS boss Ermotti: CS more loss-making than expected
Published: Tuesday, Nov 7th 2023, 12:40
Updated At: Wednesday, Nov 8th 2023, 00:53
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UBS must make massive cost savings following the takeover of Credit Suisse. The acquired former rival is "structurally loss-making", said UBS boss Sergio Ermotti on Tuesday during a conference call with journalists. And the extent is greater than originally assumed.
It was a huge restructuring at CS, said the CEO, referring in this context to the high integration costs that would be incurred. At the same time, he was convinced that things would turn out well. But not all employees could be retained.
The combined company's headcount fell by over 4,000 people in the third quarter of 2023. Compared to the combined headcount of the two then still separate UBS and CS at the end of 2022, the headcount had fallen by a total of more than 13,000 people. The two banks together had around 120,000 employees at the end of 2022. The declines also include external employees. After the first half of 2023, it was reported that 8,000 people had already left CS.
Some of the departures were voluntary and some involuntary. However, the bank did not wish to disclose the number of redundancies. UBS management also did not want to say how many of these departures were in Switzerland or how many employees from the former CS or UBS had left the bank.
At the end of August, Ermotti announced that 3,000 employees in Switzerland would be made redundant. Due to overlaps, some may have already lost their jobs this quarter. However, the majority of the redundancies will not come until next year, as previously announced.
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