UBS deepens cost-cutting drive launched after its acquisition of rival Credit Suisse

London: Swiss lender 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, a media report said. UBS said on Tuesday that it is now targeting $13 billion in savings by the end of 2026 -- $3 billion more than what it had announced six months ago, CNN reported.

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.

The additional cost reductions are likely to mean thousands more job cuts. Already, UBS has 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. The bank shed 3,000 jobs in Switzerland alone in 2023. “The year 2023 was a defining one in UBS’s history with the acquisition of Credit Suisse,” CEO Sergio Ermotti said in a statement, CNN reported.

Ermotti added: “As we move to the next phase of our journey, we will focus on restructuring and optimising the combined businesses. While our progress over the next three years will not be measured in a straight line, our strategy is clear.”