HONG KONG (Reuters) – UBS has cut around 70% of the Hong Kong-based staff headcount at Credit Suisse’s securities research unit, two sources with direct knowledge of the matter said, as the two Swiss banking giants move ahead with integration of operations.
UBS’ takeover of Credit Suisse, the biggest bank merger since the 2008 global financial crisis, was hastily arranged in March this year by Swiss authorities to avert Credit Suisse’s collapse.
As part of the integration process, UBS decided to absorb Credit Suisse’s Securities Research service this month, wrapping the business into its own research operations, Reuters reported on Sept. 5.
More than 15 equity researchers were notified earlier this week about the layoffs in Hong Kong, the sources said, adding less than 10 researchers focusing on Hong Kong and China equities will join the UBS team.
UBS declined to comment. Credit Suisse did not respond to a Reuters request for comments.
As a result of the staff layoffs, Credit Suisse on Monday terminated the Asia Pacific equities strategy coverage, according to a client note sent by the bank and reviewed by Reuters.
Two former Credit Suisse managing directors, Charles Zhou who headed China financials and Kenneth Fong who headed China Internet and Asia gaming research, are among those joining UBS, the two sources and another person with knowledge of the matter said.
Both of them will bring some junior researchers from Credit Suisse, the sources added.
Zhou and Fong did not immediately respond to a request for comment.
UBS’ takeover of Credit Suisse marks the first-ever merger of two global systematically important banks after the latter suffered years of scandals and losses before its rescue in March.
UBS Chief Executive Sergio Ermotti said on Tuesday that the momentum was pretty positive at the Swiss bank, which manages $5.5 trillion in assets since merging with former rival Credit Suisse earlier this year.
(Reporting by Julie Zhu, Kane Wu and Selena Li, additional reporting by Summer Zhen; Editing by Sumeet Chatterjee, Bernadette Baum and Emelia Sithole-Matarise)
