Up to 12,000 UBS Jobs in Switzerland Could Be Lost if the Bank Relocates, Staff Union Warns

The Swiss Bank Employees Association (SBPV) warns that as many as 12,000 UBS jobs in Switzerland could be at risk if tougher capital rules prompt the bank to relocate. In a letter to lawmakers, the association put the range at 10,000 to 12,000 of the bank's current 34,000 jobs in Switzerland, on top of cuts already under way. This is an estimate from an employee group, not a UBS plan, and UBS declined to comment on the SBPV estimate. For Metaintro readers who work in Swiss finance, the useful part is what sits behind the number, from the capital debate behind it to the social plan, notice rules and unemployment benefits that would apply if cuts ever came.

What Exactly Did the Bank Staff Association Warn?

The Swiss Bank Employees Association sent a letter to the members of the lower house economic affairs committee, known as the WAK-N, as the committee opened its deliberations on the so-called Lex UBS (translated). The letter was first published at the weekend by the newspaper NZZ am Sonntag and also seen by Reuters.

The scenario it describes is broader than a headquarters move. The association warned that a relocation, sale or merger of UBS could cost those jobs, and the letter itself described this as the worst case scenario. It also argued that a relocation, a sale or a merger of UBS is being demanded by investors and is not ruled out by the bank (translated).

The association asked lawmakers for a viable compromise that did not impose such a heavy burden on the bank. The letter also insisted that UBS had a duty to commit to its Swiss base.

SBPV president Michael von Felten wrote that the employment consequences have not been examined to date (translated). He also pointed out that studies commissioned by the federal government name job cuts and a move of the group headquarters as possible responses by the bank (translated).

Is UBS Actually Planning to Leave Switzerland?

UBS has repeatedly said it wants to remain in Switzerland. At the bank's annual general meeting, as the association's April statement records, chairman Colm Kelleher and chief executive Sergio Ermotti both made clear that UBS wants to keep its headquarters in Switzerland (translated), in reply to a direct request from its vice president Natalia Ferrara.

The bank's chairman has warned that UBS would need to carefully consider its future in Switzerland if the rules are too harsh. Some shareholders of the bank have called for UBS to leave Switzerland, and people familiar with the matter have told Reuters that UBS has been drafting potential contingency plans including shifting its headquarters or merging with another lender. In May, Ermotti said the bank needs a wider business base in the US while it prepares for all possible outcomes from the Swiss parliamentary debate over stricter capital requirements.

What Is the Capital Fight Behind the Warning?

The dispute is over how much capital UBS should have to hold to back its foreign subsidiaries. The Federal Council's draft law, dispatch 26.027, would require systemically important banks to fully back the book value of their stakes in foreign subsidiaries with Common Equity Tier 1 capital (translated).

In August, the upper house committee proposed a softer route. Its majority wanted half of that backing to count Additional Tier 1 capital, known as AT1 (translated), a type of capital that is less costly to maintain, and it backed this package by 7 votes to 5 with 1 abstention. The five dissenting members preferred a requirement for UBS to back its foreign stakes 90 percent with CET1 (translated).

The full upper house then went the other way. In September it endorsed a measure requiring UBS to support its overseas subsidiaries with 90% Common Equity Tier 1 capital and dismissed the bank's preferred 50-50 split between CET1 and AT1. UBS put a price on that outcome, saying it would mean holding about $16bn more in CET1 capital, and about $33bn in extra CET1 capital in total since taking over Credit Suisse if the decision is upheld. The $16bn would come on top of about $2bn in additional CET1 capital at UBS AG tied to ordinance-level steps announced earlier this year.

This political outcome is not a compromise and fails to address the root causes of the Credit Suisse collapse, UBS said in a statement in September, according to the Private Banker International report on the upper house vote.

The bank also said the outcome disregards the serious concerns expressed by the overwhelming majority of respondents in the democratic consultation process, which included all business representatives, the relevant employee associations and most cantons.

Where Does the Decision Go Next?

The bill is now with the lower house. Its economic affairs committee scheduled deliberations on Monday on the future capital requirements for UBS's foreign subsidiaries (translated).

That session included hearings. The WAK-N heard UBS chief Sergio Ermotti on Monday, along with Finance Minister Karin Keller-Sutter (translated). Keller-Sutter, backed by the Swiss National Bank and Finma, proposes full cover with hard equity capital (translated).

The committee will decide on its proposals to the National Council in the coming days and weeks (translated). A final outcome is seen as most likely in 2027.

How Does This Compare With the Credit Suisse Cuts Already Under Way?

The relocation estimate sits on top of a separate, real round of cuts. UBS still expects around 3,000 layoffs in Switzerland under the integration, the figure Sergio Ermotti has consistently given for redundancies in Switzerland. Across the whole group, UBS has cut about 20,000 roles worldwide since acquiring Credit Suisse, according to Private Banker International.

The bank describes a gradual path for the Swiss reductions. The Swiss reductions are planned over several years, largely through natural attrition, early retirement, and internal transfers, with previously outsourced work brought back in-house. A UBS spokesperson said the bank would keep job cuts resulting from the Credit Suisse takeover as low as possible.

Timing matters here. UBS intends to complete the Credit Suisse integration by the end of the year, and the last group of affected employees is now entering the coaching programme, which is due to end in autumn 2027.

What Protection Do UBS Workers Have Under the Social Plan?

UBS and former Credit Suisse staff in Switzerland share one set of rules. A single social plan has applied to all Credit Suisse and UBS employees since January 1, 2024 (translated), after the two banks signed an agreement with internal and external social partners on August 30, 2023 (translated).

The plan sets out what a redundant employee actually gets. Under it:

• Notice periods may be extended to 12 months, depending on the employee's age.
• Staff in the programme receive priority for internal vacancies over external candidates.
• Those who do not find another position will move to regional employment centres.

The association's three demands since the 2023 rescue were keeping as many jobs as possible, equal treatment for Credit Suisse staff and special protection for older employees (translated). On August 31, the upper house committee decided that systemically important banks should be required to have a permanent social plan (translated), a move the association welcomed (translated).

The WAK-S proposal secures a strong, stable Swiss financial centre and the jobs of bank staff alike, SBPV vice president Natalia Ferrara said in the association's statement welcoming the committee decision (translated).

In the same statement, the association called on parliament to support the path the committee had taken (translated), a package it said also marked a first step toward a compromise on the additional capital requirements (translated).

What Does Swiss Law Say About Mass Layoffs?

Swiss law adds a consultation step when cuts reach a certain size. When 10% of staff or more than 30 people in an establishment with more than 300 employees are dismissed (translated), the bank staff association's guide counts it as a mass redundancy, and the law then provides for a consultation procedure for employees.

Under certain conditions, the employer must also negotiate a social plan to soften the hardship of economically motivated dismissals (translated). Social plans in banking usually guarantee outplacement, severance or a longer notice period, help with internal placement and generous early retirement terms (translated).

At banks covered by the VAB sector agreement, affected staff, the staff committee where one exists, and the association must be informed early, and the information should cover the reasons, the future measures, the organisation and the timetable (translated). Employees or their staff committee must be able to propose ways to avoid dismissals or soften their impact (translated) during the consultation.

What Would Unemployment Benefits Look Like for a Laid-Off Banker?

If a job does go, Swiss unemployment insurance is the next layer. Under the Unemployment Insurance Act, you are generally entitled to unemployment benefit for a maximum period of two years, although the maximum number of daily allowances may vary with your personal situation, contribution period and age.

Benefits are worked out from your insured salary, which is based on income from the last six months, or from the last 12 months if this is more favourable. The daily allowance is 80% of the insured salary if you have maintenance obligations for children under 25, if the insured salary is not more than CHF 3,797 (about $4,590), or if you receive an invalidity benefit for a disability level of at least 40%. In all other cases it is 70% of the insured salary.

Taking a lower-paid job does not end support. If you earn less than your benefit while unemployed, the insurance makes a compensation payment for at least 12 months.

How Tight Is the Swiss Banking Job Market Already?

The warning comes at a weak moment for bank staff. In April the association said the unemployment rate in the banking sector is as high as after the 2010 financial crisis and in the Covid pandemic (translated), and it asked the government to study the effects of its rules on the 120,000 bank employees in Switzerland (translated).

Other employers have cut too. By September the association cited mass layoffs at Raiffeisen and Swiss Life and the move of Bank Vontobel as signs that bank employees are under heavy pressure (translated). Outside banking, full-time jobs at the Swiss telecom operator Sunrise are at risk, and inside UBS the hiring bar is shifting too, with junior bankers now required to prove they can use AI to get hired.

Pay talks are running at the same time. For the autumn 2026 round, the association is asking for a 2.5 percent increase in the wage bill (translated), and for every full-time employee earning up to CHF 120,000 a year (translated) (about $145,000) to get at least CHF 2,000 more (about $2,420). The annual minimum wages in the sector's collective agreement, the VAB, already rise by CHF 2,000 on January 1, 2027 (translated).

What This Means for Swiss Bank Workers, and What Should You Do Next?

The association's estimate is its worst case, set out in a letter to lawmakers as the committee began its review, and it should not be read as a forecast. But the integration cuts UBS has confirmed are still running, and the capital decision still has to pass the lower house, which leaves a long stretch of uncertainty for anyone whose career depends on UBS staying in Switzerland.

If you work at UBS in Switzerland, read your social plan terms now, before any notice arrives, so you know how the notice and internal-vacancy rules above apply to you.

Lacey Kaelani, Metaintro's CEO, puts it this way: A warning is not a layoff notice, but it is a good reason to update your CV while you still have the luxury of choosing your next move.

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People Also Asked

Q: Is the relocation estimate a UBS job-cut plan?

A: No. It is the bank staff association's estimate of what a relocation, sale or merger of UBS could cost in its worst case, not a UBS plan, and UBS declined to comment on it.

Q: Are the relocation losses part of the Credit Suisse cuts?

A: No. The association's estimate comes on top of cuts already made at the bank as it completes the Credit Suisse integration, which UBS plans over several years.

Q: What capital rule is the Swiss parliament debating for UBS?

A: Parliament is debating how much top-quality capital UBS must hold against its foreign subsidiaries. Senators also voted down a government proposal that would have forced UBS to make a full deduction from the parent bank's CET1 capital for the book value of its foreign subsidiaries.

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