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UBS
could axe around 30% of its combined workforce, which has
expanded to 120,000 following the state-brokered rescue earlier
this year, that person told Reuters on Wednesday.
UBS declined to comment, while Credit Suisse did not immediately
respond to a request for comment.
Credit Suisse's investment bank, back office, and its Swiss
retail bank will bear the brunt of the bloodletting, with at
least 7,000 jobs to go in Zurich alone, the person said.
Such plans indicate that UBS wants to absorb Credit Suisse's
domestic business, streamlining operations and cutting costs in
the process, a controversial decision which could trigger
concerns about the bank's domestic market dominance.
Relationship managers overseeing large client accounts as well
as corporate bankers in Switzerland are likely to be less
affected by the cull, the person added.
If implemented, the total job cuts would amount to more than
30,000. Total job losses could reach 35,000, Bloomberg News
reported on Tuesday.
Earlier this month, UBS Chief Executive Sergio Ermotti warned of
painful decisions about job cuts following the takeover of
Credit Suisse, but provided no numbers.
Reuters reported last week reported that UBS will cut Asia
investment banking jobs at Credit Suisse next month, with
significant reduction in investment bankers covering Australia
and China.
UBS completed its emergency takeover of embattled rival Credit
Suisse in June, forging a Swiss banking and wealth management
giant with a $1.6 trillion balance sheet and overseeing more
than $5 trillion in assets.
(Reporting by Oliver Hirt and Noele Illien in Zurich; Editing by
Tomasz Janowski)
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