UBS to cut 10,000 jobs by 2027
What's the story
Switzerland's largest bank, UBS, is said to be planning a major workforce reduction in the coming years. According to SonntagsBlick, a Swiss newspaper, the bank could cut as many as 10,000 jobs by 2027. However, UBS has not confirmed this number and has only said that it will "keep the number of job cuts in Switzerland and globally as low as possible."
Merger impact
Job cuts linked to Credit Suisse integration
The potential job cuts are tied to UBS's integration of Credit Suisse, a bank it acquired in 2023. The merger has led UBS to review its roles and operations for overlaps and redundancies. Since the acquisition, UBS has been restructuring its operations with an aim to streamline processes and improve efficiency across the organization.
Gradual approach
UBS's workforce reduction strategy
If the reported figure of 10,000 job cuts is accurate, it would account for nearly 9% of UBS's total workforce. The bank employed some 1,10,000 people at the end of 2024. However, these cuts are likely to be gradual rather than immediate layoffs. UBS has said that any job reductions will be done gradually and managed carefully through natural attrition and voluntary departures.
Employee welfare
Commitment to minimize impact on employees
Despite the pressure to consolidate after acquiring Credit Suisse, UBS has reiterated its intention to minimize the impact on employees wherever possible. The bank said, "The role reductions will take place over the course of several years and will be mostly achieved through natural attrition, early retirement, internal mobility and in-housing of external roles." This statement reflects UBS's commitment toward its workforce amid restructuring plans.