UBS Group AG (NYSE:UBS)'s acquisition of Credit Suisse Group AG (NYSE:CS) could lead to tens of thousands of job cuts, as Switzerland's financial sector faces the repercussions of the contentious takeover, according to the Financial Times.
Citing unnamed sources, the paper suggests Credit Suisse's domestic business and investment bank, which employ over 30,000 staff, will be most affected.
The Swiss authorities facilitated the takeover in response to concerns about the rapid rate of customer withdrawals at Credit Suisse last week.
It is too early to determine the exact number of job losses, but they could amount to a third of the 120,000 positions in the combined entity as UBS downsizes the investment bank and eliminates overlapping roles in Switzerland, the FT said.
The US$3.25bn deal has faced criticism due to bondholder losses and the absence of a shareholder vote on the union