After Private- and Investment Banking, UBS has begun restructuring group functions and back-office services with those it took over from Credit Suisse, research shows. That's already affecting Switzerland.
Several internal appointment announcements have been making the rounds at UBS these days, and it's started reorganizing its group functions following its takeover of Credit Suisse. Most of those are based in Switzerland, as well as the corporate center's back-office services, research by finews.asia shows.
Management functions to the level of team leader, three decks below the executive board, are being redistributed. According to reports, not being considered for a position doesn't mean that it will be terminated, rather that managers who haven't made it into the ranks can hope for employment in a lower function.
Complexity Slows Restructuring
There's another reason why an immediate wave of redundancies at the Swiss headquarters and in the back-office services is unlikely. IT services have extremely complex tasks and UBS is unlikely to be able or willing to do without that expertise for the time being. Reorganizing other group functions seems simpler, so determinations can be made more quickly. According to media reports, 35,000 jobs could be eliminated at UBS by the end of the year.
A familiar pattern from the reorganization of management and the investment bank is emerging. Although former Credit Suisse employees are being considered, they're outnumbered by existing UBS bankers when it comes to the distribution of positions. In UBS corporate communications, less than a handful of Credit Suisse employees have been given new jobs, as far as finews.asia can determine.
Awaiting the Swiss Decision
The reorganization now underway in Switzerland has to be looked at through a different lens than the business of the Swiss entities of UBS and Credit Suisse. The fate of Credit Suisse Switzerland, with its nationwide branch network, corporate banking, and private and investment banking, is expected to be revealed at the end of August.
August Hatecke, whom UBS has ordered back from Singapore to take over the Swiss private banking operations of the combined bank, is a case in point. He was replaced there by Jin Yee Young, as finews.asia reported.
Collaboration: Claude Baumann, Samuel Gerber
