UBS Faces Crucial Phase in Credit Suisse Integration with Major Staff Reductions

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The monumental task of absorbing Credit Suisse is entering what may prove its most challenging period for UBS. Beneath a surface of managerial calm, decisive actions are being set in motion that will directly impact thousands of employees. For shareholders, the pressing concern is whether these severe cost-cutting measures will be sufficient to stabilize a share price that has faced considerable recent pressure.

UBS is moving forward with concrete plans to realize the synergies from its historic takeover. According to media reports, the bank is preparing to issue a significant wave of termination notices. The Swiss publication SonntagsZeitung states that these "Reduction in Force" (RIF) letters are scheduled for distribution by the end of March 2026. This action is a definitive step toward eliminating operational redundancies created by the acquisition.

• Primary Action: Issuance of "RIF" termination notices.
• Timeline: Notices to be sent by end of March 2026.
• Key Target: Former Credit Suisse staff, particularly in IT and back-office functions.
• Financial Goal: Achieving $13 billion in integration synergies.

The cuts are expected to disproportionately affect personnel who previously worked for Credit Suisse. The areas in focus are information technology, back-office support, and operations. This strategic focus is a direct result of the ongoing technology integration; as legacy Credit Suisse systems are progressively decommissioned, the need for associated maintenance and administrative staff diminishes.

UBS has already acknowledged that approximately 3,000 job losses in Switzerland alone are unavoidable. Globally, management's internal target is to reduce the combined workforce to around 85,000 people. These personnel reductions constitute the primary lever for delivering the promised $13 billion in cost savings. With UBS shares having declined over 21% in the past month to a recent price of 36.39 CHF, investors are anxiously awaiting evidence that these synergies will materially improve the bottom line.

Pursuing Growth Amid Consolidation

Even as it aggressively manages expenses, the banking giant is simultaneously exploring new revenue streams. Market observers note the institution's preparations to begin offering cryptocurrency trading, including Bitcoin and Ether. This service is reportedly designed for ultra-high-net-worth clients, a move aimed at remaining competitive for sophisticated capital.

Leadership is also being positioned for the post-integration era. Chief Executive Officer Sergio Ermotti has outlined plans to step down in April 2027. Until that date, the executive team's absolute priority remains the final and successful execution of the merger, a process deemed essential for the bank's long-term profitability.

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