Swiss Newspaper: "UBS" to Cut 30% of Its Jobs

A Swiss newspaper reported, quoting an unnamed senior manager at UBS, that the entity resulting from the bank's acquisition of Credit Suisse will reduce its workforce by approximately 20 to 30 percent. UBS agreed to purchase its rival Credit Suisse for three billion Swiss francs ($3.3 billion) in a deal orchestrated by the Swiss government, the central bank, and the market regulatory authority to prevent a collapse of the country’s financial system. However, the deal, which also aims to help secure global financial stability, has raised concerns about the size of the new bank, which will have assets worth $1.6 trillion and more than 120,000 employees worldwide. The report mentioned that the bank may cut 11,000 jobs in Switzerland. It also stated that jobs in UBS's investment banking unit in the United States would be affected, adding that UBS intends to hold talks to cancel a deal that would have allowed banker Michael Klein to gain control over most of Credit Suisse's investment unit.