UBS Workforce Reduction: Turning Integration Synergies Into Efficiency

UBS Group AG UBS is planning to implement a new round of job cuts starting in mid-January 2026, according to a Yahoo Finance news report citing Bloomberg. The planned job cuts are part of ongoing workforce reductions tied to the integration of Credit Suisse (“CS”), acquired in 2023. The move will be followed by another phase of redundancies expected next year, coinciding with the bank’s intention of switching off the computer systems purchased during the takeover of CS.

UBS is entering the final year of its integration of Credit Suisse. The CS merger increased the UBS workforce to nearly 120,000 overnight. Since then, the company has already eliminated approximately 15,000 positions, mainly from overlapping roles created by the merger. It is expected that many of the job cuts will occur over several years, with some achieved through early retirement or by not replacing employees who leave. The bank also intends to reassign staff whose roles are impacted by the changes.

At present, UBS is undertaking a significant IT migration for Credit Suisse clients, with the overall integration scheduled for completion by the end of 2026. The bank has already migrated more than 90% of Credit Suisse’s Wealth Management accounts in Luxembourg, Hong Kong, Singapore and Japan. It has also transferred more than two-thirds of all Credit Suisse client accounts booked in Switzerland as of October 2025. The overall integration is scheduled for completion by the end of 2026, with additional workforce adjustments expected after the core IT transition is finalized.

Importantly, these planned reductions reflect a strategic pivot from integration to optimization rather than any deterioration in UBS’s underlying business. As parallel systems are consolidated and operational complexity is reduced, the bank requires fewer resources to run its infrastructure. This streamlining is designed to improve execution speed, strengthen internal controls, and free up capital and talent for higher-return areas.

Ultimately, UBS’s approach underscores management’s emphasis on cost discipline and long-term profitability. By aligning its workforce with a simplified operating model, the bank aims to realize up to $13 billion in cost savings by the end of 2026, positioning UBS Group for a more efficient, focused and sustainable growth phase beyond the CS integration.

Similar Move by Other Financial Firms

In June 2025, BlackRock, Inc. BLK announced plans to cut 300 jobs, affecting more than 1% of its workforce. This marked the company’s second reduction this year, following a January cut of approximately 200 positions aimed at realigning resources with the firm’s strategic priorities. Since 2023, BlackRock’s employee count has grown by more than 14% after acquiring Global Infrastructure Partners in October 2024 and Preqin Ltd. in March 2025.

The workforce reductions aim to streamline operations and optimize resources, supporting BlackRock’s efforts to improve profitability and integrate its recent acquisitions.

In the same month, Citigroup Inc. C announced that it would reduce approximately 3,500 jobs at its Shanghai and Dalian technology centers by the fourth quarter of 2025, following a $136-million U.S. regulatory fine tied to data management issues. The reductions are part of Citigroup’s broader global overhaul, which includes 20,000 workforce cuts by 2026, aiming to simplify governance, reduce management layers and improve operational efficiency, with expected annualized savings of $2-2.5 billion.

The move aligns with ongoing efforts to focus on core businesses, including the exit from consumer banking operations in 14 international markets, freeing capital for higher-return segments like wealth management and investment banking.

UBS’ Zacks Rank & Price Performance

Over the past year, UBS shares have gained 52% compared with the industry’s growth of 57.9%.

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

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

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