UBS is firing ten thousand people.
Their jobs will go as the boss of the Zurich-based Swiss bank, Sergio Ermotti said it was a hard decision but “necessary to create a UBS that is fit for the future”.
The bank is ditching much of the trading business that cost it close to 40 billion euros in losses during the financial crisis.
“The new business model is more focused, more aligned to the one integrated bank will unlock further potential for us to work together as a truly integrated bank. So I’m really confident that over time there is an additional value that we can create both in our client services proposition and also for share holders,” Ermotti said.
A quarter of layoffs are in Switzerland which brought anger and criticism among Swiss.
Geneva resident Fabio Secco said: “It’s the policy there, that every time there’s a small loss it’s the employees who pay the price.”
Another Geneva resident Eric Fauchs added: “Like all other banks they’re making a gamble and that falls back on the poor clients and people.”
Most of the rest of the jobs will go in the United States and Britain.
In London, some UBS traders arrived at work to find they were barred from the building, told to come back in two weeks for their redundancy money.
Ralph Silva, Head of banking strategy, HFS Research said they will not be the last: “We’re going to see more of this. All the major banks should lose about 10 to 15 percent of their work forces over the next four or five years. I feel bad for those 10 to 15 percent of people because it’s very hard to find work in the business right now.
Costs related to winding down its investment business will lead to a loss for the full-year, UBS said.
It will now focus on its private bank, which looks after the affairs of the wealthy.