UBS cut around 4,000 jobs globally in third quarter

UBS Group posted its first quarterly loss in almost six years as it continues to integrate Credit Suisse. © Keystone / Ennio Leanza

Swiss bank UBS eliminated around 4,000 jobs worldwide in the third quarter alone as part of the integration of Credit Suisse.

On Tuesday, UBS reported cost savings in the billions and is therefore already ahead of its own plan following the Swiss government orchestrated takeover of Credit Suisse.

When compared to the total number of people employed at the end of 2022 for the then still separate companies UBS and Credit Suisse, the total reduction in headcount is more than 13,000. This figure also includes outsourced jobs and consultants.

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On the basis of full-time equivalents, UBS now reports 115,981 jobs at the end of September, after last estimating the number of full-time equivalents at the end of June 2023 at 119,100.

Big losses

UBS Group also posted its first quarterly loss in almost six years, as the integration of Credit Suisse drags on the Swiss lender’s performance. 

The Zurich-based bank said it had a net loss of $785 million (CHF707 million) for the three months to September, after including total integration-related expenses of $2 billion. 

UBS Chief Executive Officer Sergio Ermotti is seeking to chart a path through the biggest merger in finance in decades, cutting more than $10 billion in costs and readying the combined bank for a strategic revamp due to be announced in February.

“We are optimistic about our future as we build an even stronger and safer version of the UBS,” Ermotti said in a statement Tuesday. 

The key wealth management unit saw pre-tax profit of $1.01 billion, lower than estimates. The unit saw $22 billion in net new client funds, and Credit Suisse’s wealth management business saw positive flows for the first time in a year and a half. Profit at the asset management unit also came in lower than expected. 

The Swiss bank has said it will give an outline of its three-year growth strategy as well as an update on its share buyback program in February 2024, around the same time as full-year results.

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