UBS Group AG (NYSE:UBS) is reportedly planning to significantly reduce the workforce of the recently acquired Credit Suisse Group AG (NYSE:CS), with more than half of the employees facing potential layoffs.

The planned layoffs are part of UBS’s strategy to cut back on the numbers at Credit Suisse’s loss-making investment bank, which was the source of a significant loss in the Archegos Capital Management scandal in 2021. The strategy also includes retaining the top 20% of dealmakers, particularly those focusing on technology, media, and telecoms.

UBS’s CEO, Sergio Ermotti, has expressed satisfaction with the progress of the integration, stating that it is going “very well.” He also revealed that the next layer of management will be announced soon, providing clarity for up to 1,500 employees. Ermotti’s comments echo the sentiments expressed in a Bloomberg column, which suggested that the integration of Credit Suisse is likely to be smoother than typical bank mergers, despite potential obstacles.

UBS is also planning to retain the majority of Credit Suisse's private bankers, particularly in the Asia Pacific region. Some private bankers in Singapore are set to relocate to UBS's flagship offices in the city-state as early as next month. This move is seen as one of the first concrete signs of the merger taking shape, Finews reports.