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[h=2]GIC’s investee company UBS plans to cut up to 10,000 jobs[/h]
October 28th, 2012 |
Author: Online Press
(Financial Times, Oct 27) – UBS will unveil a
split of its struggling investment bank next week in a move that will prompt the
loss of up to 10,000 jobs across the Swiss banking group.
Switzerland’s biggest bank by assets will bring large parts of its fixed
income trading business into a non-core unit leaving a reduced investment bank
with equities trading, foreign exchange and advisory roles.
The non-core operation will be headed by Carsten Kengeter, current co-head of
the investment bank, and will be wound down over time, two people close to the
situation said.
The split will lead to another reduction in risk-weighted assets of up to
SFr100bn ($107bn) and will trigger the loss of thousands of jobs in the group’s
back office over the next few years.
The job cuts will amount to almost a sixth of the bank’s workforce of 63,500
at the end of June. They will not happen all at once and the precise number is
still unclear as the exact impact on back-office functions has not yet been
determined.
It comes on top of another — still ongoing — program announced last year to
cut 3,500 jobs.
The move highlights how banks around the world are trying to adapt to a
radically changed regulatory and market environment that has left them with
lower returns and much higher capital needs for certain business areas and
national subsidiaries.
.
Rest of the article from: http://edition.cnn.com/2012/10/27/business/ubs-jobs-cut-ft/index.html?hpt=hp_t3
.
Editor’s note:
split of its struggling investment bank next week in a move that will prompt the
loss of up to 10,000 jobs across the Swiss banking group.
Switzerland’s biggest bank by assets will bring large parts of its fixed
income trading business into a non-core unit leaving a reduced investment bank
with equities trading, foreign exchange and advisory roles.
The non-core operation will be headed by Carsten Kengeter, current co-head of
the investment bank, and will be wound down over time, two people close to the
situation said.
The split will lead to another reduction in risk-weighted assets of up to
SFr100bn ($107bn) and will trigger the loss of thousands of jobs in the group’s
back office over the next few years.
The job cuts will amount to almost a sixth of the bank’s workforce of 63,500
at the end of June. They will not happen all at once and the precise number is
still unclear as the exact impact on back-office functions has not yet been
determined.
It comes on top of another — still ongoing — program announced last year to
cut 3,500 jobs.
The move highlights how banks around the world are trying to adapt to a
radically changed regulatory and market environment that has left them with
lower returns and much higher capital needs for certain business areas and
national subsidiaries.
.
Rest of the article from: http://edition.cnn.com/2012/10/27/business/ubs-jobs-cut-ft/index.html?hpt=hp_t3
.
Editor’s note:
