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.
- 1European share bounce back continues, weaker dollar helps the pound
- 2Ataturk Airport attack puts more pressure on Turkish tourism industry
- 3Toyota recalls 3.4 million cars over fuel leak and airbag problems
- 4Science and technology boom in Malopolska, Poland
- 5London Stock Exchange – Deutsche Boerse merger under threat from Brexit
- 1Britain faces higher taxes and spending cuts after Brexit vote – finance minister
- 2London Stock Exchange – Deutsche Boerse merger under threat from Brexit
- 3Science and technology boom in Malopolska, Poland
- 4Ataturk Airport attack puts more pressure on Turkish tourism industry
- 5European share bounce back continues, weaker dollar helps the pound
- 1Science and technology boom in Malopolska, Poland
- 2Britain faces higher taxes and spending cuts after Brexit vote – finance minister
- 3Wall Street drops sharply after Brexit
- 4Bank of England and ECB take measures to reassure markets
- 5London faces loss of big names as businesses look to beat Brexit by going abroad
Wires > Business
- 06:26 CET Exclusive – Credit Suisse plans on raising stake in Chinese joint…
- 06:13 CET Clothing retailer Esprit says Brexit may hit consumer sentiment
- 05:53 CET Oil prices fall as supply outlook improves
- 05:30 CET China’s ‘left field’ buyers shake up global M&A
- 04:38 CET Asia stocks rise as post-Brexit rebound continues, yen stays flat
- 02:36 CET Singapore UOB says suspends London property loans programme
- 01:50 CET Toyota recalls 3.37 million cars over airbag, emissions control…
- 01:37 CET Equity deals sag to four-year low, Brexit seen shrinking volumes -…