UBS Layoffs 2023: A Global Wave of Job Cuts Hits the Industry

In 2023, the financial industry faced a significant wave of job cuts, with UBS being one of the major players affected.

UBS announced plans to cut around 9,000 jobs globally, with a focus on reducing costs and improving efficiency.

The job cuts were part of a broader restructuring effort aimed at positioning the bank for long-term success.

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UBS plans to make 3,000 job cuts in Switzerland as part of the integration of Credit Suisse, which will be partly based on meritocracy.

These job cuts will be in addition to the 4,000 jobs UBS eliminated globally in the third quarter alone.

Up to 35,000 jobs could be cut at UBS following the Credit Suisse integration, with five rounds of layoffs to reportedly start in mid-2024.

Asia's headcount surged to 27,638 at the end of 2023, accounting for 24 percent of the enlarged Swiss financial group's overall workforce.

The planned job cuts could affect investment banking in mainland China, where UBS currently holds majority stakes in two onshore securities units.

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UBS had already reportedly axed 20 investment banking jobs in Hong Kong in March.

Wealth management may also see job cuts, particularly among private bankers that focus on smaller high net worth clients.

UBS has reportedly sought to shut accounts with a balance of $2 million or less due to limited profitability.

Asia is not expected to be a top source of job losses, especially in wealth and asset management, which are expected to be key growth drivers.

Group CEO Sergio Ermotti said that the region will account for 20 percent of global AUM in five or six years, up from the current level of 15 percent.

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Global layoffs have been reported in several countries, including Japan, Singapore, China, and Turkey. UBS has declined to comment on the details of job cuts in these regions.

The impact of layoffs is expected to be significant, particularly for long-time employees of Credit Suisse or UBS who have risen through the ranks but have a mediocre academic background. They may find the job market tough.

UBS has already cut around 4,000 jobs worldwide in the third quarter of 2023, as part of the integration of Credit Suisse. This is a substantial number of layoffs in a short period.

Switzerland-based staff have been kept busy with the integration process, which will run until the end of 2026. However, redundancies of Swiss staff are expected to begin in the second half of this year.

UBS is planning to cut up to 35,000 jobs globally as part of the integration of Credit Suisse, with five rounds of layoffs starting in mid-2024.

The bank is aiming to reduce more than $10 billion in costs through these job cuts, which could affect 50 to 60 percent of former Credit Suisse staff.

In Asia, UBS currently has a headcount of 27,638, accounting for 24 percent of the enlarged Swiss financial group's overall workforce.

One of the most obvious areas due for cuts will be in investment banking in mainland China, where UBS currently holds majority stakes in two onshore securities units.

UBS had already reportedly axed 20 investment banking jobs in Hong Kong in March, and the city's deal slump could put pressure on the region.

Wealth management could also see cuts, particularly in private bankers that focus on smaller high net worth clients, after UBS reportedly sought to shut accounts with a balance of $2 million or less.

However, asset management is less clear, with UBS currently owning two onshore units in China and undergoing a review of its mainland business that could take over a year.

Asia is not expected to be a top source of job losses, especially in wealth and asset management, which are expected to be key growth drivers for the region.

In 2023, UBS has been undergoing significant restructuring, resulting in a series of layoffs across the company.

The layoffs are a response to changing market conditions, with the bank aiming to reduce costs and improve efficiency.

UBS has been facing increased competition from fintech companies and other banks, leading to a need for cost-cutting measures.

The layoffs are expected to impact around 9,000 employees, with some reports suggesting that up to 10% of the company's workforce could be let go.

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The collapse of Credit Suisse has created a new era of competition in the Swiss banking market. Other Swiss banks are now seeing opportunities to recruit teams and gain market share. UBS agrees, stating that the collapse unleashed an extraordinary race for clients, talent, and market share. This is a significant shift, as it hasn't existed in decades.

The competition is expected to be intense, with banks vying for clients and talent. However, staff working in back-office functions are starting to worry about job cuts.

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Some staff at Credit Suisse are playing their cards right by jumping ship to other Swiss banks or setting up their own financial companies.

Employees in the right positions are looking at their options and negotiating better conditions with UBS, as they're in a position to decide whether they stay or leave.

Credit Suisse had a reputation as an entrepreneurial bank, specializing in serving small and medium-sized businesses that form the backbone of the Swiss economy.

This is an area where Credit Suisse consistently outperformed UBS, and those teams are now being poached by UBS as a "treasure trove" of talented people.