- The global financial system has been shaken by the recent failure of many major banks.
- The management plans to reduce the staff by 20-30%.
There was a tremendous upheaval in the technology industry in the United States in 2023, with over 60,000 people losing their employment in layoffs in only the month of January. Google, Microsoft, Amazon, and Salesforce, all major heavyweights in the tech industry, have announced large-scale layoffs for 2023.
Last month, several American banks that mostly served the IT industry went bust, including Silicon Valley Bank, Signature Bank, and Silvergate Bank. Even though they are the largest American bank collapses since 2008, they pale in comparison to Credit Suisse.
Severe Damage to Global Financial System
The global financial system has been shaken by the recent failure of many major banks. UBS acquired Credit Suisse to rescue the teetering financial institution. Several of the world’s most well-known institutions went down in 2023, dealing severe damage to the economy as a whole.
Swiss banks also took a hit from Credit Suisse’s demise. Not only is Credit Suisse already under scrutiny for potential violations of Russian sanctions, but the Justice Department is also looking into other institutions for possible violations. According to recent reports, UBS intends to lay off as many as 36,000 workers as a result of the merger.
The report claims that management plans to reduce the staff by 20-30%, citing information from inside sources. From 25,000 to 36,000 people’s employment may be at risk. An estimated 11,000 Swiss jobs are at risk, yet no information has been released on which division or profession would be hit the worst.
UBS and Credit Suisse employed little over 72,000 and 50,000 people, respectively, before the merger. The merger, which was supposed to rescue the bank from failure, has instead become disastrous for the staff.
