Are many jobs at risk in the merged big bank?
Observers agree that they are. The Swiss Bank Employees Association is "shocked" by the impending impact of the takeover on employees, says co-managing director Natalia Ferrara. It is feared that many more jobs are at stake than announced during the reorientation of Credit Suisse in autumn 2022.
According to Klaus Biermann and Jonas Neff of executive search firm Biermann Neff, UBS and Credit Suisse currently employ a total of 38,000 people in Switzerland. "We expect that in five years' time there will be fewer than 25,000," says Biermann.
In which areas are jobs particularly at risk?
Obviously, the management of the merged financial institution will look carefully at areas where redundancies are possible. Whoever takes over will have the upper hand, according to industry sources.
But that does not mean that all UBS jobs are safe.
"At Credit Suisse, too, there are individual areas where employees were better off than at UBS," says Erik Wirz of Wirz & Partners Executive Search.
Neff agrees. "It can be assumed that businesses that are not in UBS's strategic focus will be sold or significantly downsized," he says. He sees a lot of overlap in the mid- and back-office, i.e. in the operational units of both banks. There will also be many redundancies in legal and compliance, marketing and communications, human resources, as well as many staff functions and regional organisations.
According to industry sources, the first areas to be examined for potential cost savings will be those that have relatively little impact on operations.
Examples include human resources, finance, reporting and administration. There may also be job cuts in user support within the bank.
Andreas Dietrich, a professor at the Lucerne University of Applied Sciences and Arts, also sees jobs in bank branches at risk. "There are places where UBS and CS branches are right next to each other," he says. He also sees duplication in management. "For example, both UBS and Credit Suisse have regional managers for Zurich or eastern Switzerland. In the future, only one person will probably be needed for this function.
Which employees stand a good chance?
Relationship managers with a strong client base should have no worries, according to the industry. Such employees never have problems changing banks. They are in demand in the industry.
On both sides, employees who really add value have a good chance, says Wirz. They just have to be able to produce good performance records and figures. It is up to management to identify and retain these people, regardless of which bank they come from. Ideally, they will become positive ambassadors for change within the merged bank.
IT specialists could also be in high demand in the near future, as the two banks' IT systems will need to be integrated. Wirz emphasises the importance of providing clarity for high performers. Failure to do so could have a negative psychological impact. "In particular, the people you don't want to lose will leave.
What do these developments mean for the Swiss operations of the two big banks?
The acquisition of Credit Suisse strengthens UBS's business in Switzerland. Credit Suisse is much stronger and better positioned in the corporate client business, says Biermann: "UBS has got a real jewel here.
Can we expect salary cuts?
Dietrich does not expect bankers' salaries to be cut. Instead, costs are likely to be reduced through job cuts. This is also the expectation of other HR consultants. If you want to keep high performers, you cannot cut their salaries.
However, Biermann and Neff believe that the merger of UBS and Credit Suisse could put pressure on the salaries of former CS employees. This has been the case for some time at Credit Suisse, and now UBS employees could be affected. "With the elimination of competition between the two big Swiss banks, UBS has a historic and unprecedented opportunity to realign its domestic pay policy without having to worry about disgruntled employees moving to the other big bank," says Neff.
What does this mean for employment in the Swiss financial centre?
The merger of UBS and CS will not per se reduce the volume of business, says Dietrich. However, it can be assumed that there will be certain shifts. Personnel consultants believe that the merger of UBS and CS is likely to accelerate the transformation of the Swiss banking industry. Nevertheless, there will continue to be a need for specialists - people who excel in their field.