Swiss daily Tages-Anzeiger reported on Sunday that the new bank created by UBS is set to cut 20% to 30% of its workforce, as was revealed by an unnamed senior manager at UBS. The new banking entity was created by UBS’s takeover of rival investment banking company Credit Suisse in a move that was financially supported by the Swiss government.
The deal, worth 3 billion Swiss francs ($3.3 billion), was engineered by the Swiss government, the central bank, and the market regulator as a means of preventing the failure of Credit Suisse and in turn, the collapse of the country’s banking sector.
While the takeover helped to keep Credit Suisse afloat by absorbing it into UBS, onlookers have become concerned by the sheer size of the new banking entity, with over $1.6 trillion in assets and more than 120,000 staff worldwide.
According to the report, approximately 11,000 jobs may be cut, with jobs in the U.S. arm of the investment bank also set to be affected.