UBS Slashes Jobs and Surges in Profits Following Credit Suisse Deal

UBS Group has announced plans to cut over $10 billion in costs and eliminate 3,000 jobs in Switzerland following its takeover of Credit Suisse. The job cuts represent approximately one in 12 Swiss jobs and highlight the scale of the shake-up at the newly merged banking giant. UBS aims to fully integrate Credit Suisse's local arm, which was the only profitable division of Credit Suisse last year, rather than spinning it off. The cost-savings target of over $10 billion by the end of 2026 has been raised from an earlier estimate of $8 billion by 2027. UBS shares rose over 5% after the announcement, and the bank expressed optimism about its short-term outlook. However, the decision to absorb Credit Suisse's local operation is contested in Switzerland, with some arguing that spinning it off would have avoided negative impacts on employment and fair competition.