Credit Suisse to cut 80% of Hong Kong investment bank jobs: Report
Credit Suisse in Hong Kong is likely to be laid off this week, as part of the bank's integration with UBS Group, Reuters reported on Monday. Only 20 bankers out of the 100-strong investment banking team will be spared from the cuts, the Reuters report said, citing sources familiar with the matter. Hong Kong houses the largest share of Credit Suisse's investment bankers in Asia.
Amid speculations of Credit Suisse bankruptcy, UBS agreed to buy its rival in a hastily arranged 3-billion-franc ($3.5 billion) fire sale over a March weekend. On 12th June 2023, UBS completed Credit Suisse acquisition and the combined entity started working as a consolidated banking group. The move aimed to reduce the risk in the investment banking operation.
Last week, the UBS laid off employees from Credit Suisse's investment bank in New York and decided to close Credit Suisse's office in Houston, the report says. Market participants expect UBS to provide further details this month about its integration plans, with indications pointing to cuts amounting to about a third of the combined group's global workforce. In June, Reuters reported that UBS intended to retain over 100 Credit Suisse investment bankers across Asia to strengthen its talent in markets where the latter has a stronger presence.
Apart from Hong Kong, the Credit Suisse has investment bankers in China, Singapore, Vietnam, Australia, South Korea, Thailand, and India. The total investment banking headcount in the region was not immediately known. As part of the integration, most Credit Suisse investment banking teams in Hong Kong will retain only one or two staff, with certain sector coverage teams being completely removed.
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