The recent announcement of UBS taking over Credit Suisse has sent shockwaves through the financial world, with potential implications for thousands of jobs in the UK. The merger is expected to result in significant job cuts, with the domestic business and investment bank of Credit Suisse likely to be most affected.

According to sources familiar with UBS’s plans, it is too early to quantify the exact number of jobs at risk, but it could be as much as a third of the combined group’s 120,000 jobs. The Swiss Bank Employees’ Association has requested that layoffs be put on hold until the end of the year because it believes that the takeover would result in job losses that will be too great for the banking industry’s labor market to handle.

Credit Suisse was already amid a wide-ranging job-cutting drive, with 4,000 positions slashed so far this year. However, if UBS shuts down the majority of the company, it is anticipated that many of the bank’s 17,000 investment bankers will lose their jobs as a result of the acquisition.

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UBS, which has 74,000 employees worldwide, will also attempt to close branches, eliminate administrative posts, and eliminate responsibilities that overlap with Credit Suisse in Switzerland. UBS CEO Ralph Hamers said they will strive to cut $8 billion in expenses annually by 2027, of which $6 billion would come from personnel reductions and $2 billion from IT spending, in a call with investors on Sunday night following the news of the deal.

While the potential for job losses is a significant concern, the merger may also have some financial benefits. UBS expects to save $8bn in costs a year by 2027, and the deal is expected to strengthen the bank’s position in the wealth management industry.

However, the takeover has been criticized for the losses incurred by bondholders and the lack of a shareholder vote on the union. The Ethos Foundation, which represents Swiss institutional investors, is pressing Swiss authorities and UBS to spin off Credit Suisse’s domestic business, which employs just under 17,000 people. Ethos believes this would preserve jobs and maintain healthy competition, ensuring the proper functioning of the Swiss economy.

In conclusion, the UBS takeover of Credit Suisse is likely to result in significant job cuts, with the investment bank and domestic business of Credit Suisse most affected. While the merger may have financial benefits, it has also been criticized for its impact on bondholders and the lack of a shareholder vote. As the takeover progresses, it remains to be seen how many jobs will be affected and the overall impact on the UK job market.