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The merger between two of Switzerland’s largest banks, UBS and Credit score Suisse, might result in the lack of as much as 36,000 jobs worldwide, based on a report by SonntagsZeitung weekly, the most important Sunday newspaper in Switzerland.
The merger was shortly organized by the Swiss authorities on March 19, in response to issues in regards to the potential for a world monetary disaster. This transfer was deemed crucial after the collapse of a number of banks in the USA raised fears of contagion.
UBS has introduced that former CEO, Sergio Ermotti, will return to handle the massive dangers related to the merger. The nameless sources cited within the SonntagsZeitung report recommend that administration is contemplating slicing between 20 per cent and 30 per cent of the workforce, which might lead to a lack of between 25,000 and 36,000 jobs. The report means that as many as 11,000 of those job cuts might happen in Switzerland alone.
Earlier than the merger, UBS and Credit score Suisse had a mixed workforce of barely over 122,000 workers. In consequence, the proposed job cuts would signify a big discount in employees numbers for each banks. UBS chairman Colm Kelleher has acknowledged that there are vital dangers related to integrating these two companies.
Over the previous few years, Credit score Suisse has been embroiled in a sequence of scandals which have negatively impacted investor confidence. The financial institution’s involvement within the chapter of British monetary agency Greensill and the collapse of US hedge fund Archegos are among the many most high-profile of those controversies. Moreover, the financial institution has been implicated in a bribery scandal in Mozambique and has been fined $2 million in relation to a cash laundering case involving a Bulgarian cocaine community.
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