Credit Suisse integration is coming to an end, and UBS (UBS.US) plans to lay off employees again in January

The Zhitong Finance App learned that according to people familiar with the matter, UBS Group (UBS.US) plans to begin a new round of layoffs in mid-January. These sources also said that after this move, UBS plans to carry out another round of layoffs in late 2026, at which time it will shut down the computer systems it acquired when it bought a former competitor in 2023.

UBS is entering the final year of its historic Credit Suisse integration program. The group acquired Credit Suisse in an urgent government-brokered deal in 2023. The merger increased the number of employees to close to 120,000 overnight. Since then, the number of employees has been reduced by about 15,000, but this is less than half of the previously reported internal target of 35,000. UBS has never confirmed its broader layoff plans.

UBS previously said it plans to lay off around 3,000 workers in Switzerland alone in the next few years, and took unusual steps in 2023, detailing the local layoff plan.

In response to inquiries, a UBS spokesperson said that many staff cuts will take place over the next few years, some of which will be achieved by retiring early or not filling vacancies when employees decide to leave their jobs. The spokesperson said the bank will also seek to rearrange employees whose current positions have been abolished.

The Zurich-based bank is currently in the middle of large-scale IT system migration for Credit Suisse customers, with the goal of completing overall integration by the end of 2026. People familiar with the matter said that the second round of layoffs is expected to take place after the IT migration is completed in mid-next year, adding that even after the migration is complete, banks will have to retain some IT and operations experts to ensure a smooth transition.

Over the past two years, UBS layoffs have continued around the world, and the investment banking sector has borne most of the layoff pressure. Wealth management employees are in a relatively good position as UBS wants to retain key Credit Suisse private bankers and the customers they serve.