ZURICH — As many as 12,000 UBS jobs in Switzerland could be at risk if tougher capital rules prompt the bank to relocate, according to the Swiss Bank Employees Association, or SBPV, Reuters reported on Sunday (October 25).

Source: Reuters via Euronext Live, Oct 25

In a letter to lawmakers first published at the weekend by the newspaper NZZ am Sonntag, the association warned that a relocation, sale or merger of UBS could cost 10,000 to 12,000 of the bank's roughly 34,000 jobs in Switzerland. The letter, which was also seen by Reuters, described this as the "worst case" scenario.

Source: Business Times via EuropeSays, Oct 25

10,000–12,000Swiss UBS jobs the SBPV said could be lost in a worst-case relocation, sale or merger
34,000UBS jobs in Switzerland, according to the SBPV letter cited by Reuters
90%Common Equity Tier 1 capital backing for foreign subsidiaries proposed by Switzerland's upper house last month

On top of Credit Suisse integration cuts

The warning comes on top of cuts already made as UBS completes its integration of fallen rival Credit Suisse, which it acquired in 2023, Reuters reported. UBS said it still expects around 3,000 layoffs in Switzerland under the integration, occurring over several years largely through natural turnover, early retirements and insourcing of jobs once held externally.

UBS, which has repeatedly said it wants to remain in Switzerland, declined to comment on the SBPV estimate. A spokesperson said the bank would keep job cuts resulting from the Credit Suisse takeover as low as possible. In its letter, the SBPV called for a "viable compromise", saying stricter capital requirements could call into question UBS remaining based in Switzerland, Reuters reported.

Source: Reuters via Global Banking & Finance, Oct 25

What parliament is deciding

The warning comes as a committee in the lower house of the Swiss parliament prepares to discuss how much capital UBS should have to hold to back its foreign subsidiaries. Last month, the upper house proposed UBS should back those units with 90% Common Equity Tier 1 capital.

UBS suggested that is too much, and the bank's chairman Colm Kelleher has warned it would need to carefully consider its future in Switzerland if the rules are too harsh, the Business Times reported. Some shareholders have called for UBS to leave Switzerland, and the bank has been drafting potential contingency plans including shifting its headquarters or merging with another lender, sources have told Reuters. No relocation has been decided.