Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Swiss Brace For Major Job Losses After Credit Suisse Buyout

Swiss Brace For Major Job Losses After Credit Suisse Buyout

Swiss unions were meanwhile demanding Tuesday that the banks and governments launch a broad "rescue plan" for affected employees.
Tens of thousands of jobs could disappear in Switzerland following UBS's emergency takeover of its troubled rival Credit Suisse, observers warned Tuesday, as unions demanded a rescue package for banking staff.

The news that Switzerland's biggest bank will, under pressure from Swiss authorities, swallow up the second-largest has sent shockwaves through the wealthy Alpine nation, renowned for its banks and financial sector.

"Directly or indirectly, tens of thousands of jobs are potentially threatened," the Swiss Trade Union Federation (SGB) warned in a statement Tuesday.

"Many jobs are at risk," the Swiss Bank Employees Association (SBPV) said, warning that the uncertainty facing Credit Suisse employees was "extremely stressful."

The $3.25-billion takeover announced late Sunday was mediated by the Swiss authorities to help prevent economic turmoil spreading throughout the country and beyond after crisis-hit Credit Suisse saw its share price implode last week amid market panic following the collapse of two US banks.

The two Swiss banking giants currently count around 120,000 staff between them globally, with some 37,000 of those in Switzerland.

But once the mega-merger is completed, there is little doubt many of those jobs will become redundant.

12,000 jobs could disappear

With towns throughout Switzerland boasting both UBS and Credit Suisse branches, often side by side, and a range of parallel service offerings, the overlap in significant.

The BAK Economics think-tank warned Monday that as many as 12,000 of the Swiss-based staff across the two banks could see their jobs disappear.

In addition, "clearly, there will be consequences for many external contractors and service firms," SGB spokesman Benoit Gaillard told AFP.

Experts said that the jobs most at risk are among Credit Suisse's staff -- particularly the nearly 17,000 positions in Switzerland, as well an equivalent number of employees in its embattled investment bank unit.

But UBS positions are also in line to vanish.

When faced with two overlapping areas of responsibility, a UBS staffer will not necessarily be chosen to run the merged unit, according to Stephane Garelli, an economics professor at the International Institute for Management Development.

"Jobs will be lost on both sides," he told the broadcaster RTS.

"We risk finding ourselves in a market with many people with financial expertise, but no work."

The Ethos foundation, which represents pension funds in Switzerland and owns stakes in both banks, said it was pressing Swiss authorities and UBS to spin off Credit Suisse's domestic business, which is considered healthy.

"This would make it possible to preserve jobs and maintain healthy competition, which guarantees the proper functioning of our economy," it said.

'Rescue plan'

Swiss unions were meanwhile demanding Tuesday that the banks and governments launch a broad "rescue plan" for affected employees.

"Bank rescue must also mean job rescue," the SBPV said.

The bank staff association said it had initiated a taskforce including people from UBS and Credit Suisse, and supported by the government, towards setting up a staff rescue package.

Among other measures, it is calling for "a freeze on layoffs until the end of 2023, and for the implementation of unavoidable layoffs as part of the social plan."

While there is currently a shortage of skilled workers in Switzerland's financial sector, it warned "the takeover threatens to cut jobs on a scale that the labour market in the banking industry could not absorb."

To facilitate the mega-merger, the Swiss government granted UBS a guarantee of nine billion Swiss francs ($9.7 billion) to assume potential losses arising from risky Credit Suisse assets, and the central bank said it would provide liquidity of up to 100 billion Swiss francs.

The SGB union stressed that the government guarantee alone amounted to dishing out around 1,000 Swiss francs for every inhabitant in Switzerland, insisting the two banks "have a responsibility to avoid brutal job cuts."

"Credit Suisse staff must not pay for the errors committed by their managers and the authorities."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×