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Swiss bank UBS to cut 35,000 jobs after Credit Suisse rescue

AFP – Swiss banking group UBS plans to cut 35,000 jobs at Credit Suisse – more than half its workforce – as part of the emergency rescue takeover of its rival in March, according to a report by Bloomberg News on Tuesday.

Bankers, traders, support staff in Credit Suisse’s investment banks in London, New York, and in some parts of Asia are expected to bear the brunt, with almost all activities at risk, the report said. Credit Suisse had a staff of around 45,000 before it nearly collapsed on investor fears about its solvency, which prompted a massive bailout orchestrated by the Swiss government.

Analysts had warned that huge job losses were likely because of the overlapping activities at two of the world’s most important banks. UBS and Credit Suisse declined to comment.

It was reported last week that UBS will cut Asia investment banking jobs at Credit Suisse next month, with significant reduction in investment bankers covering Australia and China.

Combined, the two groups had around 120,000 employees at the end of last year, with 37,000 of them in Switzerland.

The Bloomberg report, citing sources close to the companies, said employees had been told of three coming waves of jobs cuts this year – the first in end-July, the others in September and October.

Credit Suisse bank in Bern, Switzerland. PHOTO: AFP