Swiss private bank EFG International has unveiled plans to shed up to 450 jobs as part of its acquisition of local rival BSI.
About 100 to 150 jobs per year are expected to be laid off across EFG and BSI between 2017 and 2019, with about two thirds of the layoffs expected to occur in Switzerland.
Further, EFG has increased its cost savings target from the BSI integration from CHF185m to about CHF240m by 2019.
The bank now expects the integration to cost about CHF250m, higher compared to the previously announced estimate of about CHF200m.
In addition, EFG also announced plans to shut down BSI Panama branch by the third quarter of 2017, and agreed a partial sale of BSI Bahamas client portfolios.
The Swiss bank also intends to offload its Independent Financial Advisers unit in the UK. It also said that Zurich, Lugano and Geneva will remain important hubs for the combined entity’s operations.
EFG agreed to buy BSI from Brazil's Grupo BTG Pactual in a cash-stock deal valued at CHF1.33bn in February 2016.
However, in May 2016, BSI became embroiled in controversy after Swiss regulator Finma accused the bank of flouting money laundering regulations in association with the Malaysian state fund 1Malaysia Development Berhad (1MDB) scandal. In the same month, the Monetary Authority of Singapore (MAS) ordered BSI to close its Singapore operations due to violations of anti-money laundering requirements, poor management oversight, and gross misconduct by some of its staff.