UBS Group (NYSE:UBS) may slash 20-30% of its workforce, or cut nearly 36,000 jobs, following its merger with Credit Suisse (NYSE:CS), the Swiss newspaper Sonntagszeitung reported. It is anticipated that 11,000 jobs will be eliminated in Switzerland and 25,000 in other countries. It is reasonable to anticipate a significant number of layoffs given the overlap in the businesses of the two organizations.
The Swiss government orchestrated the acquisition amid heightened fears of a global financial crisis after Credit Suisse’s emergency rescue call. The bank witnessed significant withdrawals of deposits and non-renewals of maturing time deposits, resulting in the usage of liquidity buffers.
According to recent reports, the Swiss Office of the Attorney General has opened an investigation to determine whether any criminal offenses occurred as a result of the merger.
Last week, UBS announced the comeback of its former CEO, Sergio P. Ermotti, to ensure a smooth integration process. In his nine-year term, Ermotti helped UBS survive several headwinds.
Is UBS a Good Stock to Buy?
UBS stock has received six Buy, five Hold, and two Sell recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $24.93 implies 16.8% upside potential.
