UBS Plans January Job Cuts to Start Final Integration Year

Core Viewpoint - UBS Group AG is initiating job cuts as part of its integration of Credit Suisse, with plans for further reductions in the coming years as it phases out acquired computer systems [1][2][4]. Group 1: Job Cuts and Workforce Changes - UBS is set to begin a new wave of job cuts in mid-January, with another round expected in 2026 [1]. - The workforce, which expanded to nearly 120,000 after the Credit Suisse acquisition, has already decreased by approximately 15,000, falling short of an internal target of 35,000 [2]. - UBS plans to cut around 3,000 jobs in Switzerland over the coming years, with some reductions occurring through early retirement and not filling vacancies [3]. Group 2: Financial Performance and Market Reaction - Following the announcement of job cuts, UBS shares rose by 1.12% [4]. - The bank has faced challenges in keeping pace with regional peers due to regulatory uncertainties in Switzerland, including proposed capital requirements that could increase by up to $26 billion [4]. Group 3: Integration and IT Migration - UBS is in the midst of a significant IT migration for Credit Suisse clients, aiming to complete the integration by the end of 2026 [4]. - A second wave of job cuts is anticipated after the IT migration is completed, although some IT and operations specialists will be retained to ensure a smooth transition [4]. Group 4: Employment Trends - Job cuts have been occurring globally within UBS, particularly affecting the investment banking sector, while wealth management employees have been retained to maintain key relationships with Credit Suisse clients [5].