According to the recent plans, UBS Group (UBSG.S) is to cut $10 billion by taking over Credit Suisse. In the next couple of years, 3,000 jobs will be gone in Switzerland.

Image Credit – CNBC

UBS has announced that they are going to keep Credit Suisse’s national bank. But on the other hand, they also have given the hint that everyone should be expecting job losses as a backlash to this pecuniary situation. As the World’s largest wealth manager, UBS could easily mold businesses to their favor and floated as always in an IOP. But they have vouched for Credit Suisse instead, as a domestic bank has a solid profit-making structure. As per the records of last year, it is the only thriving division of finance in the pitch-black situation.

In a statement, Chief Executive Sergio Ermotti said, “Our analysis clearly shows that a full integration is the best outcome for UBS, our stakeholders, and the Swiss economy.” He wrote a memo to staff to convey that 1,000 employees would be sacked as a result of assembling Credit Suisse’s domestic bank with the system. Another 2,000 employees are to be cut off as Credit Suisse badly needs restructuring.

After this, UBS shares went up by 5% in the morning; this has been the highest since 2008. The predictions of their consecutive steps will save around $10 billion by the end of 2026. The earlier estimation was to save $8 billion by 2027. But, UBS is going for faster better approaches. And this amount of savings is going to come by reducing the headcount of the organization. The existing Credit Suisse clients are hanging by a thread and they are eagerly waiting to see whether UBS can successfully pull off this formidable move.

The reported net assets of Credit Suisse, in the second quarter, outflow of 39 billion Swiss francs ($44.4 billion). There has been a loss of confidence in this franchise after this underscoring rescue has failed to stem the aim. Hence, according to UBS, the outflow has been slower this time compared to the previous quarters. After seeing the optimistic attributes in the June reports there has been some hope. As per the reports published by UBS’s global wealth management, there is net new money of $16 billion. It is the second-highest quarter in over a decade.

This marriage is probably a shotgun wedding but it is to fall as an adversary at the behest of Swiss authorities. This one-of-a-kind and first-ever merger of two globally acclaimed systemically important banks is a two-way road for UBS. This deal has not just increased the rates of risks but also opened several doors of opportunities, especially for UBS.

The deal was closed with just 3 billion Swiss francs, according to the notes of analysts; UBS acquired Credit Suisse for a song. The net assets of Credit Suisse are a lot more than just this amount. Also, they have maintained long-term good relationships with their clients and with some talented employees. Yet, the complexities of this deal can’t be denied.

Joseph Morgan

Joseph Morgan: Consumer Cyclical Reporter I am Joseph Morgan and i give “World Front News” an insight into the most recent news hitting the “Consumer Cyclical” Sector in Wall Street. I have been an independent financial adviser for over 7 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicizes valuable information for shareholder community. I am an accomplished journalist who has a passion for travel. My desire to see the world has taken me to countries around the world and given me the opportunity to report for some of the top news organizations. Address:  4704 Skinner Hollow Road Durkee, OR 97905 Phone:  (+1 )- 541-844-8855 Email: