After its takeover, tens of thousands of jobs will be lost. Credit Suisse from UBS and most of it will be from the internal business of the Swiss bank and its investment arm. This is the assessment of sources close to the relevant negotiations, who spoke with the Financial Times and referred to UBS plans. They indicated that his domestic enterprises swiss bank and its investment arm employs more than 30,000 people in total, many of whom will lose their jobs. The same sources indicated that it would be premature to make any estimates as to which professions would be abolished and limited themselves to estimating that about 1/3 of the 120,000 workers employed by them would likely be laid off.

The deal to bail out Switzerland’s second-biggest bank from its first has already been criticized for the losses it inflicted on bondholders and for not consulting or voting with shareholders.

However, the problem will become much more serious when thousands of people lose their jobs.

Credit Suisse was already developing a restructuring plan. At the end of last year, the bank employed about 50,000 people and has already started cutting staff. Since the beginning of the year, 4,000 jobs have already been eliminated. However, with its acquisition, many of the 17,000 employees employed by its investment arm are expected to lose their jobs. After all, the intent of UBS, which has 74,000 employees worldwide, is to eliminate any jobs that intersect with Credit Suisse. He also plans to close branches in Switzerland and cut staff in senior positions.

In a phone call with analysts, while talks are underway to buy Credit Suisse, Ralph Hammers, chief executive of UBS, said he intends to cut the bank’s spending by $8 billion a year by 2027. cuts in staff and spending totaling $2 billion on information technology research and development.

Over the past year, Credit Suisse employee spending reached a total of CHF 8.8 billion, equivalent to $9.53 billion. However, in internal correspondence with bank employees, CEO Ulrich Kerner and chairman Axel Lehmann stressed that no decisions had been made. until a decision has been made about which jobs will be cut and who will leave the bank. The Ethos Foundation represents Swiss institutional investors who jointly control between 3% and 5% of the two banks combined. The institution has hinted that it is lobbying Swiss authorities and UBS to spin off Credit Suisse’s domestic operations, which employ about 17,000 people. As he characteristically noted, “in this way, jobs will be preserved and at the same time, fair competition will be ensured, ensuring the normal functioning of our economy.”