SBPV called for a viable compromise on capital rules in a letter to the WAK, citing demands from investors for UBS to relocate, sell, or merge.
The potential relocation of UBS could threaten 10,000 to 12,000 of the bank’s current 34,000 jobs in Switzerland, in addition to cuts already being made as UBS integrates Credit Suisse.
UBS has cut about 20,000 roles worldwide since acquiring Credit Suisse, with chief executive Sergio Ermotti stating that the integration would result in around 3,000 redundancies in Switzerland.
The bank’s workforce reduction will take place over several years, largely through natural attrition, early retirement, and internal transfers, with employees facing redundancy entering a coaching programme under UBS’s social plan.
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UBS intends to complete the Credit Suisse integration by the end of the year, with the last group of employees now entering the coaching programme, due to end in autumn 2027.
The WAK is due to assess capital requirements for UBS’s foreign subsidiaries, with some UBS shareholders urging the bank to leave Switzerland, and UBS considering contingency options, including moving its headquarters or merging with another lender. Notice periods for employees may be extended to 12 months, depending on the employee’s age, providing some support during the transition period. Additionally, the bank has stated that staff in the coaching programme will receive priority for internal vacancies over external candidates, and those who do not find another position will be moved to regional employment centres.
Last month, the upper house proposed that the bank should support its foreign subsidiaries with 90% Common Equity Tier 1 capital, which could impact the bank’s decision on relocation or merger. The bank’s social plan also includes bringing previously outsourced functions back in-house, which may help to mitigate some of the job losses. Furthermore, the coaching programme is designed to help employees develop new skills and find new roles within the bank, reducing the number of redundancies. The proposed capital requirements and the bank’s contingency plans will be closely watched by employees and investors alike, as the bank handles this critical period.