New UBS CEO Tries To Calm Staff Fears

2023-04-07 02:10:17

(MENAFN- Swissinfo) “We will treat all employees of both Credit Suisse and UBS fairly”: UBS CEO Sergio Ermotti. Keystone / Elia Bianchi

Sergio Ermotti has told Credit Suisse staff it is“critical” to remain focused on clients and keeping the business running as the merger of the two banks proceeds, according to an internal memo seen by Reuters.

This content was published on April 7, 2023 April 7, 2023 minutes Reuters/dos

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“We cannot let ourselves get overly distracted by the integration efforts,” Ermotti said in the memo.“It's critical for us to remain focused on supporting our clients and maintaining operational excellence.”

Last month, Swiss authorities announced that UBS would buy Credit Suisse in a shotgun merger to stem further banking turmoil after the smaller lender had come to the brink of collapse.

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UBS announced last week it was rehiring Ermotti as CEO, its former boss from 2011 to 2020, to steer the takeover which will create one bank with $1.6 trillion (CHF1.45 trillion) in assets and more than 120,000 staff.

In his first communication to Credit Suisse staff after taking over as UBS CEO, Ermotti said there would be“change and hard decisions” ahead.

Still, he tried to calm the nerves of anxious employees worried about massive lay-offs and upheaval ahead.

Big cuts

The bank created by the merger is poised to reduce its workforce by 20%-30%, the Swiss SonntagsZeitung newspaper reported at the weekend. This could mean up to 35,000 jobs globally, including 11,000 in Switzerland.

UBS Vice Chairman Lukas Gaehwiler told the bank's shareholders on Wednesday that it was too early to speculate about job cuts.

Ermotti asked staff to be patient while the company worked out its next moves.

“While it's too soon to speculate about the end state of the combined organisation, you have my commitment that we will treat all employees of both Credit Suisse and UBS fairly,” he wrote.

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