UBS likely to fall short of job cut target amid Credit Suisse integration

UBS Group is poised to fall short of its internal target to reduce its workforce to 85,000 employees by the end of its Credit Suisse integration in 2026, according to a report in the Financial Times.

Despite taking on approximately 45,000 former Credit Suisse staff in March 2023, UBS has only shaved off around 14,000 positions as of June 2025. Its headcount still exceeds 105,000 full-time equivalents. The pace of reductions has slowed to an average of just 1,300 roles eliminated per quarter since early 2024—a significant step-down from over 3,500 cuts per quarter in late 2023.

UBS executives had reportedly hoped to consolidate to 85,000 employees by integration completion, though the bank has not publicly confirmed this figure.

A key headwind for UBS has been the fall in voluntary attrition, historically around 7% annually. This year, departures have declined, making it harder to reduce headcount organically.

Moreover, UBS is still migrating over one million Swiss retail clients from Credit Suisse systems, a process expected to conclude by March 2026. During this period, UBS cannot fully decommission legacy platforms or eliminate overlapping functions.

As a result, workforce reductions will rely on natural attrition, early retirement schemes, and filling vacancies internally, rather than wholesale layoffs.

Cost-Cutting Targets Remain on Track

While workforce reductions lag, UBS continues to deliver on broader cost savings. By the second quarter of 2025, UBS had generated US $9.1 billion in gross savings—70% of its $13 billion target set for 2026. Operational efficiencies included decommissioning over 1,000 applications and shutting down half of its servers.

These figures align with UBS’s Q1 2024 reporting, which noted US $5 billion in gross savings had already been achieved, with more to come.