ZURICH, April 6 (Reuters) – UBS (UBSG.S) Chief Govt Sergio Ermotti has advised Credit score Suisse (CSGN.S) workers it’s “essential” to stay centered on shoppers and retaining the enterprise working because the merger of the 2 banks proceeds, in response to an inner memo seen by Reuters.
“We can not let ourselves get overly distracted by the mixing efforts,” Ermotti mentioned within the memo. “It is important for us to stay centered on supporting our shoppers and sustaining operational excellence.”
Final month, Swiss authorities introduced that UBS would purchase Credit score Suisse in a shotgun merger to stem additional banking turmoil after the smaller lender had come to the brink of collapse.
UBS introduced final week it was rehiring Ermotti as CEO, its former boss from 2011 to 2020, to steer the takeover which can create one financial institution with $1.6 trillion in belongings and greater than 120,000 workers.
In his first communication to Credit score Suisse workers after taking on as UBS CEO, Ermotti mentioned there could be “change and onerous selections” forward.
Nonetheless, he tried to calm the nerves of anxious workers anxious about huge lay-offs and upheaval forward.
The financial institution created by the merger is poised to scale back its workforce by 20%-30%, Swiss each day Tages-Anzeiger reported on the weekend, citing an unnamed senior UBS supervisor.
UBS Vice Chairman Lukas Gaehwiler advised the financial institution’s shareholders on Wednesday that it was too early to take a position about job cuts.
Ermotti requested workers to be affected person whereas the corporate labored out its subsequent strikes.
“Whereas it’s too quickly to take a position concerning the finish state of the mixed group, you’ve my dedication that we’ll deal with all workers of each Credit score Suisse and UBS pretty,” he wrote.
Reporting by John Revill and Oliver Hirt; Modifying by Kirsten Donovan
Our Requirements: The Thomson Reuters Belief Ideas.
