UBS Faces Deep Cost-Cutting – Thousands of Jobs at Risk
Swissk-bank UBS is preparing another sweeping wave of job cuts as the integration of Credit Suisse proves slower and costlier than planned. Internal figures indicate that around 10,000 positions will be eliminated by 2027 – a significant step in CEO Sergio Ermotti’s effort to close the efficiency gap with global rivals.
According to internal information reported by Swiss media «Sonntagsblick», the bank expects around 10,000 jobs to disappear over the next three years, affecting both Switzerland and international hubs.
UBS will «keep the reduction as small as possible» and rely on natural attrition, early retirements, and internal mobility, but large-scale cuts appear unavoidable, the bank said with no further details.
Employee Base Could Sink Below 95,000
If the planned reduction proceeds, UBS’s workforce is expected to fall to approximately 95,000 full-time positions. The decline has been visible since the start of Credit Suisse’s integration: from almost 120,000 employees in mid-2023 to roughly 104,000 jobs by 2025 – an average loss of more than 1,250 per quarter. Larger quarterly waves of up to 2,000 jobs are now expected.
Integration Delays Raise Operational Costs
The integration effort is behind schedule. While around 85 percent of clients have been migrated, many large and complex accounts remain, requiring intensive manual work. The longer Credit Suisse systems remain in use, the more the cost burden grows.
Cost Efficiency Under Pressure
UBS CEO Sergio Ermotti has pledged savings of $13 billion and achieved $10 billion so far. However, the group-wide cost-income ratio remains high at around 77 percent.
Comparable institutions operate far more efficiently: Morgan Stanley at 67 percent, Société Générale at 61 percent, and Santander at just 41 percent.
Wealth Management – A Weak Spot
Even domestic wealth management competitor Julius Baer reports a stronger profile. In UBS’s flagship global wealth management division, costs remain stubbornly elevated, with a cost-income ratio near 80 percent.
High compensation for client advisers, particularly in the US, is a major factor undermining the bank’s benchmark ambitions.
Regulatory Relief in Sight
Market uncertainty persists over future Swiss capital rules, yet there are signs of improvement, according to the news agency «Reuters».
The Finance Ministry is reportedly open to easing requirements – a move that could support the bank’s valuation as restructuring continues.
UBS now faces a dual imperative: deliver promised synergies and restore profitability momentum. Execution on job cuts and system consolidation will be decisive in convincing the market that the Credit Suisse integration can ultimately generate shareholder value.
