As many as 12,000 jobs at UBS in Switzerland could be threatened if the country’s largest bank decides to relocate in response to proposed stricter capital requirements, according to a warning from the Swiss Bank Employees Association (SBPV), reported by NZZ am Sonntag.
In a letter to Swiss lawmakers, the employees’ association reportedly cautioned that a potential departure by UBS could put between 10,000 and 12,000 domestic positions at risk. The bank currently employs approximately 34,000 people in Switzerland, meaning a relocation could have significant consequences for the country’s financial sector and wider economy.
The potential losses would come on top of existing job reductions as UBS continues integrating Credit Suisse, which it acquired following the rival bank’s collapse in 2023.
The warning comes amid an intensifying debate in Switzerland over how much capital UBS should be required to hold against the operations of its foreign subsidiaries. A committee of the lower house of parliament is preparing to examine the issue, following a proposal from the upper house last month that would require UBS to support those subsidiaries with Common Equity Tier 1 capital equivalent to 90% of their capital requirements.
UBS has argued that the proposed threshold would be excessively demanding. The bank’s chairman has also warned that particularly restrictive rules could force the institution to reconsider its long-term presence in Switzerland.
The debate has prompted concerns among employees, investors and policymakers about the consequences of a potential relocation. Some UBS shareholders have reportedly advocated moving the bank out of Switzerland, while sources cited by Reuters have said the lender has been developing contingency plans. These could include transferring its headquarters abroad or pursuing a merger with another financial institution.
In its letter, the SBPV urged lawmakers to seek a practical compromise that would safeguard financial stability without undermining UBS’s ability to operate competitively from Switzerland. The association warned that overly stringent capital requirements could ultimately call into question whether the bank should remain headquartered in the country.
A relocation would represent a major development for Switzerland, where UBS is one of the most prominent financial institutions and a significant employer. The prospect of thousands of jobs being moved or eliminated has added an employment dimension to a dispute otherwise focused on banking regulation and financial resilience.
Neither UBS nor the Swiss Bank Employees Association immediately responded to Reuters’ requests for comment.
The outcome of the parliamentary discussions could prove decisive in determining the balance between strengthening the bank’s financial safeguards and preserving its domestic operations. For Switzerland, the challenge is to ensure that UBS remains sufficiently capitalised while avoiding regulatory measures that could encourage one of its most important financial institutions to move elsewhere. Photo by Ank Kumar, Wikimedia commons.
