The financial institution, created after the takeover of Swiss bank Credit Suisse by rival UBS, may eliminate between 20% and 30% of its jobs, i.e. between 25,000 and 36,000 positions worldwide, the weekly SonntagsZeitung claims, citing a senior UBS manager, AFP and Pro Reuters reports.

That’s far more than Credit Suisse planned in its restructuring plan, unveiled before Swiss authorities forced UBS into an emergency takeover of Credit Suisse to avoid bankruptcy. In its restructuring plan, Credit Suisse forecasts 9,000 job cuts by 2025.

Two weeks ago, UBS agreed to buy rival Credit Suisse for three billion Swiss francs ($3.3 billion) in a deal brokered by the Swiss government, the National Bank and the Financial Markets Regulator to avoid the collapse of the Swiss company. financial system.

But the deal, which was also designed to ensure global financial stability, also raised concerns about the size of the new bank, which will have about $1.6 trillion in assets and more than 120,000 employees globally.

Before the takeover, UBS had just over 72,000 employees, compared to more than 50,000 at Credit Suisse.

According to the weekly SonntagsZeitung, the bank that will be formed as a result of the merger could eliminate around 11,000 jobs in Switzerland alone. The publication did not specify the periods in which this restructuring will take place, as well as the types of activities that will be most affected by the two companies.

However, on Saturday new UBS CEO Sergio Ermotti expressed concern about the size of the institution created after UBS’s takeover of Credit Suisse. “Even with the merger of UBS and Credit Suisse, we will not be at the top of the ranking of international banks in terms of size. There is no problem of excessive size,” said Sergio Ermotti in an interview with the Italian financial daily Il Sole. 24 Ore.

According to Sergio Ermotti, in the domestic market the new banking group will have a market share comparable to that of the cantonal banks or the Raiffeisen group, adding that the only segment in Switzerland where UBS/Credit Suisse will have a noticeable position is in loans to multinational companies, but also in this segment, it will face international competition. Ermotti also expressed confidence that the new entity’s business model should be similar to UBS’s current model, citing the central role of asset management activities and limiting the risks associated with investment banking.

Credit Suisse shareholders, who will receive just 76 cents for each Credit Suisse share they own, are due to gather in Zurich on Tuesday for the bank’s general meeting. There will also be a UBS shareholders meeting later, also in Zurich. The merger of UBS/Credit Suisse will be carried out without the approval of the shareholders, the authorities cancel the obligation to consult with the shareholders in the interests of the stability of the financial market.