UBS looks to axe 30% of staff and keep Credit Suisse’s domestic business

UBS (UBSG.S) is weighing cutting tens of thousands of jobs following its emergency takeover of Credit Suisse, as the Swiss bank leans towards keeping the domestic operations of its fallen rival, according to a person familiar with the discussions.

UBS could axe around 30% of its combined workforce, which has expanded to 120,000 following the state-brokered rescue earlier this year, that person told Reuters on Wednesday.

UBS declined to comment, while Credit Suisse did not immediately respond to a request for comment.

Credit Suisse’s investment bank, back office, and its Swiss retail bank will bear the brunt of the bloodletting, with at least 7,000 jobs to go in Zurich alone, the person said.

Such plans indicate that UBS wants to absorb Credit Suisse’s domestic business, streamlining operations and cutting costs in the process, a controversial decision which could trigger concerns about the bank’s domestic market dominance.

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