According to two sources with knowledge of the situation, Credit Suisse will begin laying off about 80% of its investment banking employees in Hong Kong this week as part of its integration with UBS Group.
The layoffs that would affect Credit Suisse's 100-person investment banking unit in the region will only spare approximately 20 bankers, according to the people, who declined to be named since the conversations were private.
The majority of Credit Suisse's investment bankers in Asia are located in Hong Kong.
There were no comments on the issue from Credit Suisse.
In June, UBS completed the purchase of its struggling rival with the support of the Swiss government after a string of failed transactions caused a client exodus. Since then, it has promised to lower risk in Credit Suisse's investment banking business.
Employees from Credit Suisse's New York investment bank were laid off by UBS last week, according to Reuters, which cited a source with knowledge of the matter. According to the insider, UBS has also decided to close Credit Suisse's Houston office.
Market participants anticipate UBS to be more specific about its integration plans this month. According to its goals, insiders, experts, and indications, the combined group's global headcount will be reduced by around a third.
In order to maintain talent in markets where Credit Suisse has a greater presence, reports surfaced in June that UBS was aiming to retain over 100 investment bankers from Credit Suisse throughout Asia.
Credit Suisse also has investment bankers in China, Singapore, Vietnam, Australia, South Korea, Thailand, and India in addition to Hong Kong. It was not immediately apparent how many employees worked in investment banking in the area.
Most Credit Suisse investment banking teams in Hong Kong will be permitted to retain just one or two employees as part of the integration, but some sector coverage teams will be completely eliminated, according to the two sources.
According to those retained, their primary focus will be on mergers and acquisitions (M&A).
According to the sources, Christian Deiss, who has been in charge of Credit Suisse's Asia-Pacific M&A division since 2021, is in charge of overseeing the change in regional investment banking in cooperation with UBS. An inquiry for comment from Deiss was not immediately answered.
(Source:www.scmp.com)
The layoffs that would affect Credit Suisse's 100-person investment banking unit in the region will only spare approximately 20 bankers, according to the people, who declined to be named since the conversations were private.
The majority of Credit Suisse's investment bankers in Asia are located in Hong Kong.
There were no comments on the issue from Credit Suisse.
In June, UBS completed the purchase of its struggling rival with the support of the Swiss government after a string of failed transactions caused a client exodus. Since then, it has promised to lower risk in Credit Suisse's investment banking business.
Employees from Credit Suisse's New York investment bank were laid off by UBS last week, according to Reuters, which cited a source with knowledge of the matter. According to the insider, UBS has also decided to close Credit Suisse's Houston office.
Market participants anticipate UBS to be more specific about its integration plans this month. According to its goals, insiders, experts, and indications, the combined group's global headcount will be reduced by around a third.
In order to maintain talent in markets where Credit Suisse has a greater presence, reports surfaced in June that UBS was aiming to retain over 100 investment bankers from Credit Suisse throughout Asia.
Credit Suisse also has investment bankers in China, Singapore, Vietnam, Australia, South Korea, Thailand, and India in addition to Hong Kong. It was not immediately apparent how many employees worked in investment banking in the area.
Most Credit Suisse investment banking teams in Hong Kong will be permitted to retain just one or two employees as part of the integration, but some sector coverage teams will be completely eliminated, according to the two sources.
According to those retained, their primary focus will be on mergers and acquisitions (M&A).
According to the sources, Christian Deiss, who has been in charge of Credit Suisse's Asia-Pacific M&A division since 2021, is in charge of overseeing the change in regional investment banking in cooperation with UBS. An inquiry for comment from Deiss was not immediately answered.
(Source:www.scmp.com)
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