Credit Suisse is set to cut around 80% of its Hong Kong-based investment banking staff as part of its integration with UBS Group, according to sources familiar with the matter. The job cuts will begin this week and will affect approximately 80 out of the 100 members of Credit Suisse’s investment banking team in the territory. Only about 20 bankers will be spared from the layoffs. Hong Kong is the location with the highest number of investment bankers for Credit Suisse in Asia. Both Credit Suisse and UBS have declined to comment on the matter.
The integration between Credit Suisse and UBS comes after UBS closed a deal to acquire its struggling peer, backed by the Swiss government, in June. Following a series of problematic deals that led to a loss of clients, UBS aims to reduce risk in Credit Suisse’s investment banking operation. Last week, UBS reportedly laid off employees from Credit Suisse’s investment bank in New York, and it has also decided to close Credit Suisse’s Houston office.
Market participants anticipate that UBS will provide more information on its integration plans this month. Insiders and analysts suggest that the combined group’s global workforce may face cuts of around one-third. In June, it was reported that UBS aimed to retain over 100 Credit Suisse investment bankers across Asia, particularly in markets where Credit Suisse has a stronger presence, such as China and Singapore. The size of Credit Suisse’s investment banking headcount in the region is currently unknown.
As part of the integration, most of the Credit Suisse investment banking teams in Hong Kong will retain only one or two staff members. Certain sector coverage teams will be entirely removed. The retained staff members will primarily focus on mergers and acquisitions (M&A). Christian Deiss, the head of Credit Suisse’s Asia-Pacific M&A business since 2021, is leading the regional investment banking transition in collaboration with UBS.
In conclusion, Credit Suisse is set to make significant job cuts in its Hong Kong investment banking team, affecting approximately 80% of the staff. The job cuts are part of the bank’s integration with UBS Group, which aims to reduce risk in Credit Suisse’s investment banking operation. While UBS remains tight-lipped about the details, market insiders and analysts predict that the combined group may see one-third of its global workforce being cut. As the integration progresses, most of the Credit Suisse investment banking teams in Hong Kong will retain only one or two staff members, primarily focusing on M&A.
