Thousands of jobs in UK face axe as investment arm ‘downsized’

Thousands of jobs are at risk in the City as UBS takes over embattled lender and rival Credit Suisse.

Credit Suisse employs around 5,000 people in the UK, making the firm one of the largest investment banking employers in the country.

UBS has roughly 6,200 staff in the UK, with many based in its City of London premises. 

Writing on the wall: There are questions for what this deal could mean for many British jobs

Colm Kelleher, chairman of UBS Group, said in a statement that the tie-up ‘represents enormous opportunities’, adding that his bank’s long-term aim would be to ‘downsize’ Credit Suisse’s investment banking business, aligning it with the ‘conservative culture’ of UBS.

Although the buyout creates one of the biggest banks in the world, with a balance sheet of roughly £1.3 trillion, there are questions for what this deal could mean for many British jobs.

The city regulator, the Financial Conduct Authority, said it is likely to approve the deal, stating that it ‘continues to engage closely with UK and international regulatory partners to monitor market developments’.

The Bank of England said: ‘We have been engaging closely with international counterparts throughout the preparations for today’s announcements and will continue to support their implementation.

‘The UK banking system is well capitalised and funded, and remains safe and sound.’

The news of the buyout was also welcomed by the central bank in the US.