UBS To Terminate 10,000, Or One Sixth Of Its Employees

Tyler Durden's picture

There is down-sizing; there is trimming-the-fat; and then there is UBS. The once-giant Swiss Bank just announced it will cut up to 10,000 jobs. This comes on top of the 3,500 from last year - which makes a rather dramatic weight-loss strategy for the 63,500 employee firm. As the FT reports, they will not happen all at once (so just after the election then?) but will lead to the closure of a sizable part of UBS' fixed-income trading operations (and other capital intensive areas of the investment bank). Perhaps in the understatement of the day: "There were several options on the table but UBS has decided on the most radical one," a person familiar commented as the plan is hoped to reduce complexity and costs - so no more Bloomberg Terminals? One thing surely gone is a source of fixed income axes: "The new strategy, hammered out in several executive board meetings in New York this week and set to be announced next Tuesday, will lead to the closure of a sizeable part of UBS’s fixed-income trading operations and other capital-intensive areas of the investment bank." The winner: Goldman of course, which in a world of collapsing trading revenues has taken to Lehmaning its competition once again, only this time not using brute force but the far more classical war of attrition in a collapsing economy.

Via FT:

UBS is set to unveil a radical downsizing 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 largest bank by assets will significantly shrink the trading side and complexity of its investment bank and as a consequence also cut thousands of jobs in its back office over the next few years, three people close to the situation said.


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 – programme 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.


The new strategy, hammered out in several executive board meetings in New York this week and set to be announced next Tuesday, will lead to the closure of a sizeable part of UBS’s fixed-income trading operations and other capital-intensive areas of the investment bank.




“There were several options on the table but UBS has decided on the most radical one,” one person familiar with the plan said.



Full story here

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Jason T's picture

The axe is swinging wildly again.. 

spastic_colon's picture

its hard for those fixed income traders to compete with the Fed and the Fed funded GS

malikai's picture

10k from back office? That's a lot of messy papery work gone..

Bananamerican's picture

one sixth down....five sixths to go....

economics9698's picture

Dodd-Frank will clean this up. /sarc.

Ratscam's picture

gotta send the guardia financia to get at the UBS Italo Team:
Ermotti, Spezzotti, Orcel, the first two former Merryll guys.
They are fighting against the Swissie Stadler and the teuton Jürg Zeltner, the later who sees himself as the future CEO of UBS.
IB will be reduced drastically with the sole remaining goal to funnel money into PB and AM, the remaining departments to make 30 bp's of AuM.

GetZeeGold's picture



Green shoots everywhere.....forward hoes.


yourfather's picture

spoken like an insider...

Jurg is an impressive speaker I will give you that.

alstry's picture

Inefficient your new replacement in the Udder World

Why milk people when we can milk much more efficient technology....

ZeroAvatar's picture

alstry:  Did Mish ban you from spamming your blog on HIS website?

Ignorance is bliss's picture

Ummm...that's the ibm link to Watson. You know Watson the super computer that will make knowledge workers obsolete. Kind of like algo computers make human traders obsolete.



Jonas Parker's picture

1. Fire traders

2. Buy more high-speed computers.

3. Give all "algos" free health  benefits.


Works for me...

JPM Hater001's picture

Yeah but they are going to do what they always do to get there.  Fire brokers, transfer accounts to the ones left.  Fire assistants and product specialist and reduce the sales desk.


In other words, service is about to get worse.

ebworthen's picture

C'mon, this will spur the recovery onward; more people on unemployment under the "seasonal" category, more money for WalMart, more houses for the 1% to buy to rent out to the plebians, more food stamps, etc.

walküre's picture

Lloyd B: waiting for a flood of resumes to hit my inbox in 3,2,1 .. same as the day Lehman went tits up

ZeroAvatar's picture

I watched a coupla seconds of video of Blankmind the other day:  One EVIL looking MOFO!  SCARY.

reTARD's picture

Brilliance in its simplicity. Great stuff WB7!

ebworthen's picture

I thought I heard a loud flush.

fockewulf190's picture

Hassan Chop! Ol' Hassan is going to be up to his turban in work, chopping his ass off for at least the next decade.

Zero Govt's picture

cruel Banzai ..but i like it

williambanzai7's picture

You will appreciate this. When I told people to buy APPL in early 2009' they had a UBS account and the UBS guy starting arguing about it because he thought is was two risky an investment for seniors.

He had some other stupid idea that went absolutely no where.

williambanzai7's picture

I will tell you this. They all thought Asia would save them...not! They are culling like crazy out here because the Chinese are not impressed with their bullshit and the Chinese privatization bonanza is finito.

The trading technology and outsourcing is driving head counts lower and the old relationship style of doing business got killed by Muppetology. No one has a long and storied relationship with their banker anymore. Every job is a cut throat open bidding process. No one gets the insider track like the good ol days. And basically people are saying what the fuck can you do for me?

What goes around comes around.

larz's picture

start at the top please

NotApplicable's picture

Honestly, how many people does it take to make sure the server is plugged in?

TruthInSunshine's picture

This is merely the beginning of the mass culling.

How many employees does the "financial industry" need when everything financial (for now) is being micro-managed down to the exceedingly tiny detail by Ben & Timmmmay.

Now that even Joe & Mary Public know this, in whatever vague, amorphous way, the fat lady is bellowing.

On a side note, the Presidents Working Team on Financial Matters (aka Kevin Henry, fielding calls from Bernank & Timmmay!!) is "giving everything she's got, Captain!," to keep NAS&PDAAPL greenish/not-too-reddish on this Friday.

DoChenRollingBearing's picture

Yes, this well correlates with the low Bloomberg terminals sales in an earlier ZH thread today.  It seems that the financial services industry no longer adds as much value as it used to...

Winston Churchill's picture

Don't tell Saint Bernake of Zimbabwe that.

He could lose his status as the patron Saint of zombie insolvent banks at this rate.

duo's picture

it never did add value, except for property insurance

Tommy Gunner's picture

Who needs terminals in a centrally planned global economy?   Fundamentals are nothing more than white noise... they key now is to listen to the central bankers latest edicts re: printing - nothing else matters.

Marco's picture

Joe & Mary public are irrelevant ... TPTB won't need the financial industry any more when the economy goes over the cliff, they will have gained all they can from it at that point and it will just be a question of retaining asset retention and rent seeking. First on the agenda, elimination of estate taxes.

Bananamerican's picture

"I'm Mitt Romney and I approved this message"

Mentaliusanything's picture

Fixed income desks .... Fixed income.... What Fucking income, it's all been ZIRPed by Ben.

What does the sound of 10,000 wallets closing sound like Ben...

It sounds to me like "Winning"

FUCK YOU Ben Bernanke.... Transitory indeed you pathetic little man with the brains of a smashed crab

kaiserhoff's picture

Fine start, so when do the governments join it?

jonan's picture

c'mon now, you can cut off an arm, but you can't cut off the heads, of a multiheaded hydra, fast enough, everyone knows that.

Jonas Parker's picture

Honestly, how many people does it take to make sure the server is plugged in?

It depends... are they Polish?


Sorry, I just couldn't resist...

LFMayor's picture

They're cutting off the cancerous limbs, trying to save the torso.

Zero Govt's picture

They're cutting off the limbs, trying to save the cancerous torso.

there, fixed it

q99x2's picture

Movin movin movin

Keep them doggies rolling

Hey maybe they can get a job in the Swiss Army.

NotApplicable's picture

Strange that it happened almost two weeks before before hitting the news.

Zadok's picture

Really? That seems par for events of importance.

Dr. Richard Head's picture

Damn skippy.  A celebrity nipple slip is released immediately though, so we have that going for us.