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.
- 1Former Greek finance minister confirms there was a secret ‘Grexit’ plan
- 2Golden shot: China shocks the commodities market with reserves revelation
- 3Oil price stability on the horizon as companies cut jobs and costs
- 4Microsoft says Windows 10 is a “new era” in personal computing
- 5Chinese stock meltdown and Windows 10 debut
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Russia unveils ‘straight’ flag, internet responds
- 3Seven reasons why Yanis Varoufakis is now a political legend
- 4Greek crisis: ‘Agreement reached’ after marathon talks
- 5International news | euronews, latest international news
- 6Nasa announces the discovery of an earth-like planet
- 7Is Saudi Arabia outlawing rainbows for being gay?
- 8Pluto: New Horizons space probe provides closest-ever pictures
- 9International breaking news | euronews online world breaking news in video
- 10French actor Gérard Depardieu ‘a threat to Ukraine national security’
- 11BREAKING: Formal nuclear deal reached with Iran, says diplomat
- 12Latest News Bulletin
- 13Greece votes ‘No’ in overwhelming rejection of bailout proposals
- 14Berlusconi linked with a shock return to government – in Russia!
- 15At least 10 dead in explosion in Turkish town close to border with Syria
- 16Greece clinches deal with eurogroup after marathon talks
- 17‘Imposed’ bailout deal must be implemented, says Greek PM
- 18Israel angry as Iran and West talk up nuclear deal
- 19Varoufakis resigns after Greek referendum
- 20European Union News | euronews: latest breaking news and headlines about European Union
Wires > Business
- 06:20 CET New cocktails to test limits of cancer drug pricing
- 06:20 CET HSBC’s first-half profits rise 10 percent on bumper Hong Kong…
- 05:35 CET Lloyds shareholders question government’s sale plan
- 05:12 CET Greeks brace for stock market carnage after five-week shutdown
- 05:03 CET China July factory activity shrinks most in two years – Caixin PMI
- 23:19 CET Automakers buckle up for more China woe after stock crash saps…
- 22:59 CET German auto makers agree deal to buy Nokia HERE – sources
- 20:48 CET Subaru says suppliers have been told to treat workers fairly