UBS Group AG announced that it will eliminate an additional 10,000 positions by 2027, a move that will reduce its global workforce from about 110,000 at the end of 2024 to roughly 95,000 by the end of the plan. The decision follows a series of reductions that have already taken the bank’s headcount down by 15,000 since the 2023 acquisition of Credit Suisse.
The job cuts are part of a broader strategy to close the cost‑income gap that has widened after the integration. UBS’s cost‑income ratio sits at 77 %, higher than peers such as Morgan Stanley (67 %) and Santander (41 %). By trimming overlapping roles and streamlining operations, the bank aims to bring its ratio closer to industry averages while preserving the core capabilities that drive long‑term growth.
UBS will manage the reductions over several years, primarily through natural attrition, early retirement, internal mobility, and in‑housing of external roles. The bank has emphasized that it will keep the number of forced layoffs as low as possible, relying on voluntary leavers and the 7 % annual attrition rate that already exists among its employees. This approach is intended to minimize disruption while still achieving the necessary cost savings.
The announcement comes amid a market rally that followed news of potential regulatory relief from Swiss authorities. A 5 % rise in UBS’s share price earlier in the week reflected investors’ optimism that easing capital rules could save the bank more than $20 billion in capital raising, giving it additional flexibility to fund the integration and pursue efficiency gains. The job‑cut plan, while a headwind, is framed as a necessary step to maintain competitiveness in a sector facing higher operational costs and slower deal activity.
CEO Sergio Ermotti said the cuts are “inevitable” but that UBS will “keep the number of job cuts in Switzerland and globally as low as possible.” He added that the bank’s focus on voluntary leavers and early retirement will help mitigate the impact on employees while still delivering the cost savings needed to support the long‑term strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.