UBS announces 3,000 job cuts despite record $29 billion profit

Throughout this year, the banking industry has undergone unprecedented transformations. Now, Swiss banking giant UBS has announced its intention to slash thousands of jobs, despite its record-breaking profits from the acquisition of the struggling Credit Suisse, adding another layer of intrigue to the industry's evolution.

UBS achieved a remarkable $29.3 billion (£22.8 billion) in profit between April and June, a stark contrast to the $2.6 billion earned during the same period last year. This represents the largest quarterly profit ever recorded by a bank.

The profit figure was largely attributable to the strategic acquisition of Credit Suisse's assets at a favourable price, a move made to mitigate concerns about Credit Suisse's potential collapse. 

Despite this success, the bank has decided to reduce its workforce by 3,000 employees in the coming years as part of its cost-cutting efforts, reported Reuters. 

In March, UBS stepped in to rescue Credit Suisse by acquiring it for $3.25 billion. This decision came under significant pressure from regulatory authorities who were concerned about the possibility of Switzerland's second-largest bank facing insolvency as clients initiated large-scale withdrawals.

UBS has revealed its intention to completely integrate Credit Suisse's domestic banking operations, which remained profitable last year, rather than opting for a separate spin-off approach.

"Our analysis clearly shows that a full integration is the best outcome for UBS, our stakeholders and the Swiss economy," chief executive Sergio Ermotti said in a statement, reported BBC.

The integration process is scheduled to commence next year, with the full migration of clients expected to be finalised by 2025, according to the announcement.