Credit Suisse UBS Deal: Credit Suisse was one of the oldest banks in the world, but this year the banking crisis took over and finally the way out was found after the intervention of the Swiss government.
Credit Suisse UBS Deal: Credit Suisse, one of the oldest banks in Europe, has been the biggest victim of the recent Banking Crisis 2023 that started from America. Later, the Swiss government intervened and got it acquired by UBS. Now it seems that UBS itself is caught in a new crisis in the process of bailing out Credit Suisse. This Swiss bank is being forced to lay off thousands of employees.
So many people will lose their jobs
According to a Bloomberg report, UBS is planning to lay off 35,000 employees of Credit Suisse. This is more than 50 per cent of its employees. Credit Suisse had about 45,000 employees before being ruined by the banking crisis. After the intervention of the Swiss government, another major bank UBS agreed to buy the troubled Credit Suisse.
This is how the deal was done
The government had prepared a rescue package of 109 billion Swiss francs i.e. $ 120.82 billion for this deal. Under the deal, UBS agreed to buy Bank Credit Suisse for $3.25 billion. In fact, the governments and banking regulators of many countries including Switzerland were troubled by the Credit Suisse crisis. If it was not resolved quickly, it could have made the banking crisis more serious.
Experts were already afraid of this
However, when the deal between UBS and Credit Suisse was being done, many analysts had expressed apprehension of massive layoffs. He said that many business activities of UBS and Credit Suisse overlap. Now his apprehension seems to be proving true. However, UBS has not officially given any information regarding the possible layoffs.
Now this is the number of employees of UBS
After the Credit Suisse deal, the total number of employees of UBS has increased to around 1.2 lakh. Of these, 37 thousand employees are in Switzerland. Bloomberg says that the layoffs at UBS can be done in three phases. The first layoff may happen in July, while the second and third layoffs are expected to happen in September and October this year.
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