Breaking News: Inside Scoop on Credit Suisse’s Internal Memos – Job Cuts, Bonuses, and More Amid $3.3B UBS Merger

Credit Suisse’s Internal Memos on Job Cuts and Bonuses

Following Credit Suisse’s $3.3 billion sale to UBS Group AG, the bank issued two internal memos to staff addressing job security, pay, bonuses, and pensions, which were signed by Chairman Axel Lehmann and CEO Ulrich Körner.

Colleague Q&A

The Q&A memo answers various questions employees may have regarding the merger, including the following:

1. Reason for the merger: The merger was decided upon to best serve stakeholders’ interests amid falling confidence in Credit Suisse.
2. Office attendance: Staff are expected to continue working as normal.
3. Job security: There is no immediate change to employees’ roles.
4. Future job security: The bank will communicate any changes and manage the process with transparency and openness.
5. Severance packages: Severance packages will be provided in line with market practice.
6. Salary and bonus payments: There are no changes to payroll arrangements.
7. Corporate functions: No significant changes are anticipated until the transaction is closed.
8. Transaction timeline: The merger is expected to close by the end of 2023.
9. Contract workers: Contracts will be honored until the merger is approved and closed.
10. Swiss allowances: Employment terms will remain the same until the transaction is completed.
11. Salary increases: Already communicated salary increases will still be effective from April 2023.
12. 2023 bonuses: Bonuses will be allocated for eligible employees based on business and individual performance.
13. Unvested stock: No adjustments are anticipated for UCA and deferred award programs until the acquisition close date.
14. Pension contributions: Pension contributions will continue as long as employment continues.
15. CS pensioners: Pension funds will not be affected, as they are managed independently from the company.

Memo from Lehmann and Körner

In a separate memo, Lehmann and Körner thanked employees for their dedication and commitment during the challenging period. They emphasized that the merger would be managed with transparency and openness, ensuring fair treatment for everyone. The memo also reiterated that there is no immediate impact on clients or daily working operations, and all branches and global offices will remain open.