(Boursier.com) — The takeover of the Swiss credit by UBS could result in the loss of nearly 40,000 jobs, according to the Financial Times. People familiar with UBS’s plans told the FT that Credit Suisse’s domestic operations and its investment bank are expected to be the most affected by the cuts, which could affect up to a third of the group’s 120,000 jobs. combined. People familiar with the plans added that UBS would seek to eliminate overlapping roles with Credit Suisse in Switzerland, close branches and reduce administrative staff.
Recall that the president of UBS, Colm Kelleher, declared that the investment bank of Credit Suisse was going to be liquidated. UBS anticipates annual savings here of around $7 billion by 2027. The Swiss National Bank said the deal between Credit Suisse and UBS included 100 billion Swiss francs (101 billion euros) in cash aid. Under the terms of the all-stock buyout transaction, Credit Suisse shareholders will receive one UBS share for every 22.48 Credit Suisse shares held, representing a total amount of 3 billion Swiss francs based on the previous announcement of the deal. Credit Suisse also reduced the value of its portfolio of Additional Tier 1 bonds to zero. These bonds had a nominal value of 17 billion dollars.
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