UBS Group (UBS.US) is considering layoffs in France in response to the country's deteriorating economic outlook and the ongoing merger with Credit Suisse.

A spokesman for UBS stated that due to the unfavorable market environment and following the integration of Credit Suisse earlier this year, UBS is considering restructuring part of its Business activities. However, he did not specify the potential scale of the layoffs.

Credit rating agency Moody's downgraded France's rating last week, indicating that the political and fiscal deadlock in France may affect its ability to cut spending and reduce the budget deficit.