Bankers at Credit Suisse are fiercely working their phones and dusting off their CVs to secure new roles as they brace for job cuts set to affect tens of thousands of people – but recruiters warn they can’t be picky.
On the back of UBS’s $3.2bn takeover of its domestic rival, wide-scale job cuts are expected within the investment bank and domestic units.
Principal Partners Pte managing director Will Tan, who has fielded “hundreds” of calls from Credit Suisse bankers says they may have to be “open-minded” about their next role amid a tough economic climate in which banks have been trimming staff to save costs.
“To be honest, I don't think there are enough jobs out there to accommodate all the job seekers,” the Singapore-based recruiter told Bloomberg TV.
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Staff in Credit Suisse’s dealmaking unit and domestic business, which comprises more than 30,000 employees, face the most severe cuts, the Financial Times reported according to people familiar with UBS’s plans. There’s no clarity yet on which jobs will go, the people told the FT, but there may be impacts on nearly a third of 120,000 roles in both units.
“They will have to be, I guess, open-minded when it comes to getting the next role. It could be taking on something in a related area… to stay employed in such uncertain times, because the longer you stay away, your market value will drop,” Tan said.
UBS has made it clear it plans to strip out CHF8bn in costs over the next four years, with around CHF6bn of these related to staff, the bank's chief executive, Ralph Hamers, said during a call with analysts on 19 March.
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It will also wind down Credit Suisse's trading assets in a so-called bad bank, and that its investment bank will be significantly scaled back.
Credit Suisse bankers have been working their phones hard to find new opportunities, even amid trying to complete deals, Financial News reported.
"We're still working on live deals, but at this point it is more about professional pride," said another investment banker. "I'm spending 60% of my time working on this, and 40% doing my CV and reaching out to recruiters."
Tan said bankers should look at other opportunities.
“For jobseekers, I would say, look at opportunities. Is it a base side? And maybe also if you are from capital markets or global markets, maybe look for a role in private wealth. I think the key is to be open-minded.”
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