Credit Suisse Group AG (NYSE:CS) rescuer UBS Group AG (NYSE:UBS) is reportedly poised to lay off tens of thousands of staff from the embattled bank in a move that could well mark another blow for London’s Canary Wharf.
Some 35,000 posts could be removed from Credit Suisse as the bank is merged with UBS, according to Bloomberg, with cuts set to affect offices in Asia, New York and London.
Around 5,000 investment bankers had worked at Credit Suisse’s Canary Wharf office before UBS’s Swiss government-brokered takeover, with many from the office already having faced layoffs.
Under the new plans, UBS is gearing up to cut around 30% of its newly combined workforce of 120,000 people.
Following HSBC’s decision to downsize from Canary Wharf, further job losses in London’s second-largest financial district could mark further woes after a trend appeared of companies downsizing in the wake of the pandemic.
Ever-more competitive deals being offered by Canary Wharf and City of London landlords could aim to lure companies no longer requiring large offices as staff remain set on working from home, according to London School of Economics director Tony Travers.
This was a key factor in HSBC’s decision to downsize to a smaller office near St Paul’s Cathedral, he added.
“It was inevitable that (chief executive) Ermotti would have to make tough decisions following the forced takeover,” interactive investor analyst Victoria Scholar commented on the job cuts, adding “synergies will be a key part of the tie-up”.