UBS Group to Miss Workforce Reduction Goal Post CS Takeover

UBS Group AG UBS is falling behind the plan to reduce its workforce to 85,000 by the end of the Credit Suisse (“CS”) integration in 2026, according to a Financial Times report.

Per the FT report, UBS has been cutting jobs at a slower pace than expected, with only 1,300 roles shed per quarter since the beginning of 2024, leaving it with more than 105,000 employees as of June 30, 2025. The bank has reduced nearly 14,000 positions since acquiring Credit Suisse in March 2023, but the pace of cuts has slowed since then.

What’s Slowing UBS Group’s Headcount Reduction Pace

A major obstacle has been a decline in voluntary attrition, which historically sees around 7% of its staff leave each year through natural attrition, but that figure has dipped below historical levels, making it more difficult for the bank to reduce headcount without resorting to large-scale layoffs.

Another complicating factor is the ongoing integration of Credit Suisse. UBS is in the midst of migrating more than 1 million CS retail clients to its systems. Until that process is completed, a milestone expected only by the end of March 2026, the bank cannot fully shut down many legacy Credit Suisse platforms. This dependency delays deeper cuts, as significant overlaps in operations and technology can only be eliminated once the migration is complete.

As a result, workforce reductions may not take place in a single sweeping move but rather unfold over several years. It is expected that much of the downsizing will be achieved through natural attrition, early retirement schemes and the absorption of external roles into existing teams, reflecting its preference for a gradual, less disruptive path toward efficiency.

UBS’s Efforts to Reduce Costs

Despite slower headcount reductions, UBS Group continues to advance on its broader cost-cutting targets. According to its business restructuring plans, it is likely to wind down its non-core and legacy portfolio, releasing more than $6 billion of capital by 2026-end. Its non-core and legacy business divisions have achieved a 62% reduction in risk-weighted assets (RWA) by the second quarter, well ahead of its original plan.

As a result, the company has updated its ambition and aims to reduce non-core and legacy RWA to below $8 billion by the end of 2025 and $1.6 billion by the end of 2026. Through these efforts, the company is well-positioned to enhance the client experience and unlock further cost reductions toward the end of 2025 and into 2026 as it delivers on its ambition of $13 billion in gross cost savings by the end of 2026. Since the end of 2022, the company has achieved $9.1 billion in cost savings, or around 70% of its $13-billion target by 2026.

Final Thoughts on UBS Group

Though UBS is lagging its headcount reduction target, the bank’s steady progress on cost savings and balance sheet efficiency suggests it remains on track to achieve its broader integration goals. The slower pace of job cuts underscores the company’s cautious approach in prioritizing stability during the Credit Suisse migration, while leaving open the possibility of more aggressive measures once system integrations are complete.

UBS Zacks Rank & Price Performance

UBS shares have gained 18.1% in the past six months compared with the industry’s rise of 26%.

Currently, UBS Group sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Banks’ Efforts to Reduce Workforce

In May 2025, HSBC Holdings plc HSBC announced plans to reduce its workforce in France by 348 jobs, accounting for approximately 10% of its staff in the country. This move is part of the overall cost-cutting strategy by CEO Georges Elhedery, aiming to reduce expenses by $1.5 billion by 2026.  

These job cuts by HSBC are part of a broader program aimed at simplifying operations and enhancing efficiency in an increasingly competitive landscape.

The same month, Reuters reported that Citigroup C is planning to cut about 3,500 jobs at two of its technology centers in China by the start of the fourth quarter of 2025. The reduction will take place at the China Citi Solution Centres in Shanghai and Dalian.

The move is part of C’s strategy to simplify and reduce its global technology operations to improve data management.

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This article originally published on Zacks Investment Research (zacks.com).

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