Up to 12,000 jobs at risk if UBS relocates: Swiss workers’ association
The Swiss parliament is set to discuss how much capital the bank must hold to back its foreign subsidiaries
[ZURICH] As many as 12,000 UBS jobs in Switzerland could be at risk if tougher capital rules prompt the bank to relocate, according to the Swiss Bank Employees Association (SBPV).
In a letter to lawmakers first published on Saturday (Oct 24) by newspaper NZZ am Sonntag, the association warned that a relocation, sale or merger of UBS could cost 10,000 to 12,000 of UBS’ roughly 34,000 jobs in Switzerland.
The letter, which was also seen by Reuters, described this as the “worst-case” scenario, and comes on top of cuts already made at the bank as it completes it integration of fallen rival Credit Suisse, which it acquired in 2023.
UBS, which has repeatedly said it wants to remain in Switzerland, declined to comment on the SBPV estimate. A spokesperson said the bank would keep job cuts resulting from the Credit Suisse takeover as low as possible.
UBS said it still expects around 3,000 layoffs in Switzerland under the integration and that these will occur over several years, largely via steps such as natural turnover, early retirements and insourcing of jobs once held externally.
The SBPV warning comes as a committee in the Lower House of the Swiss parliament prepares to discuss how much capital UBS should have to hold to back its foreign subsidiaries.
Last month, the Upper House proposed UBS should back those units with 90 per cent Common Equity Tier 1 capital.
UBS suggested that is too much and the bank’s chairman Colm Kelleher has warned it would need to carefully consider its future in Switzerland if the rules are too harsh.
Some shareholders of the bank have called for UBS to leave Switzerland, and the bank has been drafting potential contingency plans including shifting its headquarters or merging with another lender, sources have told Reuters.
The SBPV letter, which also said UBS had a duty to commit to its Swiss base, urged lawmakers to pursue a “viable compromise” that did not impose such a heavy burden on the bank. REUTERS
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