UBS to reposition investment bank; cut up to 2,000 jobs
Amid the tempestuous scenario in global financial markets, Swiss banking giant UBS on Friday announced repositioning of its investment bank and will slash up to 2,000 jobs.
By PTI |
LONDON: Amid the tempestuous scenario in global financial markets, Swiss banking giant UBS on Friday announced repositioning of its investment bank and will slash up to 2,000 jobs.
The ongoing crisis in the financial markets and dramatically changed industry dynamics require us to recalibrate our business, UBS Investment Bank Chairman and CEO Jerker Johansson said in a statement.
While the revenue outlook is uncertain, these measures will allow us to focus on our strengths, reduce the cost base to a more sustainable level and position our core businesses for growth, once fundamentals improve, he said.
The investment bank would prioritise its business portfolio to preserve its core strengths and client franchises across equities and fixed income, currencies and commodities (FICC), while downsizing or exiting certain business activities, a UBS statement said.
This would lead to greater efficiencies and a further reduction in the banks headcount and balance sheet, it added.
Meanwhile, the investment bank would reduce net headcount by an additional 2,000 bringing staffing levels to about 17,000 by year-end. The present reduction takes the total job cuts to around 6,000 since the peak in third quarter 2007.
"Reductions would be predominantly targeted to businesses being exited or downsized in order to protect and sustain our core client franchises," it added.
The ongoing crisis in the financial markets and dramatically changed industry dynamics require us to recalibrate our business, UBS Investment Bank Chairman and CEO Jerker Johansson said in a statement.
While the revenue outlook is uncertain, these measures will allow us to focus on our strengths, reduce the cost base to a more sustainable level and position our core businesses for growth, once fundamentals improve, he said.
The investment bank would prioritise its business portfolio to preserve its core strengths and client franchises across equities and fixed income, currencies and commodities (FICC), while downsizing or exiting certain business activities, a UBS statement said.
This would lead to greater efficiencies and a further reduction in the banks headcount and balance sheet, it added.
Meanwhile, the investment bank would reduce net headcount by an additional 2,000 bringing staffing levels to about 17,000 by year-end. The present reduction takes the total job cuts to around 6,000 since the peak in third quarter 2007.
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"Reductions would be predominantly targeted to businesses being exited or downsized in order to protect and sustain our core client franchises," it added.
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