EFG International plans to cut jobs in BSI integration

Swiss private bank EFG International plans to cut up to 450 jobs over the next three years as part of its takeover of BSI Bank.

The acquisition of Ticino-based bank from Brazil's Grupo BTG Pactual SA has made EFG one of Switzerland's biggest private banks, behind the likes of UBS, Credit Suisse, Julius Baer and Pictet. EFG announced its intention to acquire BSI in February and is currently integrating its assets, personnel and systems.

Chief Executive Joachim Straehle plans several measures to reach this goal, but the bulk is to come from laying off bankers. EFG said it now expects 100 to 150 job cuts per year between 2017 and 2019. The cuts will happen across EFG and BSI, and largely focused in Switzerland. The merged bank has around 3,800 employees. Estimated integration costs were raised from CHF200 million to CHF250 million.

"Having conducted a more detailed analysis, additional synergies have been identified which will support us in building an efficient business of substantial scale to deliver sustainable growth," Straehle said in a statement.

The combination of the two banks, which will operate under the EFG International brand, means higher profit targets. EFG said it targets a pre-tax profit of 141 million francs.