UBS to cut another $3 billion in costs as it absorbs Credit Suisse

UBS has deepened a cost cutting drive launched after its emergency acquisition of rival Credit Suisse, as it slashes thousands of jobs and tries to boost earnings to make sure the mammoth deal pays off.

UBS has deepened a cost cutting drive launched after its emergency acquisition of rival Credit Suisse, as it slashes thousands of jobs and tries to boost earnings to make sure the mammoth deal pays off. The Swiss lender said Tuesday that it was now targeting $13 billion in savings by the end of 2026 — $3 billion more than it announced six months ago. The savings will provide “necessary capacity for reinvestment to reinforce the resilience of our infrastructure as we absorb Credit Suisse and to drive sustainable growth by investing in talent, products and services,” it added. UBS (UBS) has already trimmed costs by $4 billion — including through job cuts — or roughly one-third of the amount now targeted. It slashed headcount in the fourth quarter by more than 3,100 to under 113,000, taking the number of layoffs announced last year above 16,000. Staff previously employed in Credit Suisse’s investment bank made up “a strong part” of the fourth quarter job cuts, chief financial officer Todd Tuckner told reporters on a call. Many of them were in the United States and United Kingdom, “but also spread across the globe,” he added. More job losses are likely after the combined bank secures all the necessary regulatory approvals for the merger, likely by the middle of this year. Staff working on those tasks are “critical to retain until such time as the entities come together,” said Tuckner. “At that point we will look at what’s required and what’s needed.”