UBS to cut 3,000 jobs in Switzerland after Credit Suisse takeover

• UBS is planning to cut 3,000 jobs in Switzerland after its shock takeover of rival Credit Suisse.
• The move comes as the financial giant targets nearly $10 billion in savings by 2026.

UBS is planning to cut 3,000 jobs in Switzerland as it continues to integrate Credit Suisse following the shock takeover of its rival earlier this year.

UBS chief executive Sergio Ermotti said in a call with investors on Thursday that the merger with Credit Suisse would result in "around 1,000" redundancies as it integrates Credit Suisse's domestic bank, and that the long-term restructuring process would "lead to about 2,000 additional redundancies in Switzerland over the next couple of years," per AFP.

In a memo to employees, Ermotti said that the 1,000 job cuts are expected to start in late 2024, per Reuters.

"The vast majority of cost reductions will come from natural attrition, retirements and internal mobility, while around 1,000 redundancies will result from the full integration of Credit Suisse (Schweiz) AG," he said.

In a statement accompanying UBS' earnings results on Thursday, Ermotti added: "Our analysis clearly shows that a full integration is the best outcome for UBS, our stakeholders and the Swiss economy."

The company said Thursday that it plans to complete the integration of Credit Suisse by the end of 2026 and aims to cut costs by $10 billion during that period.

The sudden collapse and takeover of Credit Suisse shocked the banking world earlier this year, raising fears of global financial contagion following the collapse of several regional US lenders including Silicon Valley Bank.

Amid fears the 167-year-old financial institution could go under, the Swiss government brokered a shotgun marriage with UBS, with Credit Suisse being sold for 3 billion Swiss francs ($3.25 billion).

Credit Suisse declined to comment. UBS did not immediately respond to a request for comment.