UBS may eliminate up to 12,000 jobs in Switzerland if new, stricter capital requirements are imposed, according to the Swiss Bank Employees Association. This warning was issued in a letter to lawmakers, reported by the newspaper NZZ am Sonntag on Sunday. The association highlighted that such a relocation could affect 10,000 to 12,000 positions from UBS's current workforce of approximately 34,000 in Switzerland.
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These job cuts would add to those already underway as UBS integrates Credit Suisse. The association's concerns come as a committee in the lower house of the Swiss parliament prepares to discuss capital requirements for UBS's foreign units. A proposal from the upper house suggests that UBS should back these entities with 90% Common Equity Tier 1 capital by September 2026—a level the bank deems excessive.
UBS's chairman has indicated that the bank will need to reconsider its future operations in Switzerland if new regulations become overly stringent. Some shareholders have even suggested that UBS consider leaving Switzerland altogether. Sources also reported that the bank is exploring contingency plans, which may involve relocating its headquarters or pursuing a merger with another financial institution. The Swiss Bank Employees Association has called for a "viable compromise," warning that stricter capital regulations could jeopardize UBS's operations in Switzerland.