Up to 12,000 jobs: Swiss banking union fears job cuts at UBS

Swiss politicians are planning tougher requirements for major banks. If UBS leaves the country as a result, up to 12,000 jobs could be lost, warns the Swiss Bank Personnel Association. According to media reports, management is already examining emergency plans for relocating the company's headquarters.

According to estimates by the Swiss Bank Personnel Association (SBPV), up to 12,000 jobs could be lost at the major bank UBS in Switzerland if it were to move. If stricter capital regulations force the institute to move, sell or merge, up to 12,000 of the approximately 34,000 jobs in the home market would be at risk, the association warned in a letter to parliamentarians.

The SBPV described this as “the worst possible scenario,” the “NZZ am Sonntag” quoted from the letter. These job cuts would be in addition to those already planned by UBS due to the takeover of Credit Suisse.

The background is Swiss politicians' plans for stricter banking rules in response to the collapse of Credit Suisse and its emergency takeover by UBS in 2023. Next week, a committee of the Swiss National Council will discuss the future capital requirements for UBS's foreign subsidiaries.

The Council of States proposed last month that banks must back these investments with 90 percent common equity core capital. UBS considers these requirements to be too strict. In its letter, the SBPV called on parliamentarians to find a workable compromise that would not place such a heavy burden on the bank. At the same time, the association emphasized that UBS had an obligation to commit to its Swiss location.

UBS Chairman Colm Kelleher had already warned that the bank would have to carefully examine its future in Switzerland if the new rules were too harsh. According to insiders, some shareholders have already asked the institute to leave the country. UBS is working on contingency plans that include moving its headquarters or merging with another financial institution, people familiar with the process told Reuters.

UBS, which has repeatedly reaffirmed its commitment to Switzerland as a location, has not yet commented on the job cuts mentioned. A spokesman said the bank wanted to keep the cuts resulting from the Credit Suisse takeover “as low as possible”. The institute continues to expect around 3,000 layoffs in Switzerland, which will take place over several years, primarily through natural fluctuation and early retirement.