UBS Workforce Reduction Targets Delayed

According to a report by the Financial Times, UBS Group AG is unlikely to meet its ambitious target of reducing its workforce to 85,000 by the completion of the Credit Suisse integration in 2026. The report, which cites company filings and insiders, highlights a slower-than-expected pace in job cuts.

Current Workforce Statistics

Since the start of 2024, the Swiss banking giant has only managed to shed 1,300 roles per quarter, leaving its employee count at over 105,000 by June. This sluggish progress is attributed to a variety of factors, including a notable decrease in voluntary employee departures and the complexities involved in merging the legacy systems of Credit Suisse.

Background of the Merger

UBS acquired Credit Suisse in a state-backed rescue operation in March 2023, marking a significant consolidation in the Swiss banking sector. The integration process has been under close scrutiny, with workforce reduction being a key component of the merger's success metrics.