UBS shares dip amid reports of job cuts, Credit Suisse deal probe

UBS shares dip amid reports of job cuts, Credit Suisse deal probe
© Reuters.

By Scott Kanowsky — Shares in UBS Group AG (SIX:) edged lower on Monday after a media report said the Swiss banking giant may slash its workforce following the completion of its government-brokered takeover of peer Credit Suisse (NYSE:).

In a report citing an unnamed senior UBS manager, daily newspaper Tages-Anzeiger said on Sunday that the lender is set to reduce headcount by between 20% to 30% once the integration of Credit Suisse is done.

The report said about 11,000 positions in Switzerland would be cut, while jobs at UBS’ U.S. investment banking division would also be impacted.

Elsewhere, Switzerland’s Federal Prosecutor has opened a probe into whether there were possible breaches of criminal law during the negotiations surrounding the emergency UBS-Credit Suisse merger, the Financial Times reported.

UBS agreed to purchase its smaller rival Credit Suisse last month for CHF 3 billion (CHF 1 = $1.0889). The tie-up was overseen by Swiss financial regulators, who were hoping the deal would shore up confidence in the country’s banking system.

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