Swiss Bank Staff Group Warns 12,000 UBS Jobs Could Go
The Swiss Bank Employees Association says up to 12,000 UBS jobs in Switzerland are at risk if tougher capital rules push the bank to relocate, be sold or merge.
As many as 12,000 UBS jobs in Switzerland could be lost if tougher capital rules lead the bank to relocate, according to the Swiss Bank Employees Association, known as SBPV.
The association made the estimate in a letter to lawmakers that a Swiss newspaper published on Saturday, October 24. It said a relocation, sale or merger of UBS could cost between 10,000 and 12,000 of the bank's roughly 34,000 jobs in the country. The letter called this the "worst-case" scenario. It would come on top of cuts already made as UBS completes its integration of Credit Suisse, which it acquired in 2023.
UBS response
UBS, which has repeatedly said it wants to stay in Switzerland, declined to comment on the SBPV figure. A spokesperson said the bank would keep job cuts from the Credit Suisse takeover as low as possible. UBS still expects around 3,000 layoffs in Switzerland under the integration, spread over several years and carried out largely through natural turnover, early retirements and bringing in-house jobs once held externally.
The capital debate
The warning arrives as a committee of the Swiss parliament's Lower House prepares to discuss how much capital UBS must hold to back its foreign subsidiaries. Last month the Upper House proposed that those units be backed with 90 per cent Common Equity Tier 1 capital.
UBS has suggested that level is too high. Chairman Colm Kelleher has said the bank would need to consider its future in Switzerland carefully if the rules are too harsh.
Some shareholders have called on UBS to leave Switzerland. According to sources, the bank has been drafting contingency plans that include moving its headquarters or merging with another lender.
Source: The Business Times