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UBS To Terminate 10,000, Or One Sixth Of Its Employees
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.
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Full story here
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The axe is swinging wildly again..
its hard for those fixed income traders to compete with the Fed and the Fed funded GS
10k from back office? That's a lot of messy papery work gone..
one sixth down....five sixths to go....
Dodd-Frank will clean this up. /sarc.
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.
And ..... they're GONE!!
http://www.youtube.com/watch?v=jrLbY4-Q99A
Bullish!
Green shoots everywhere.....forward hoes.
spoken like an insider...
Jurg is an impressive speaker I will give you that.
Inefficient Bankers.....meet your new replacement in the Udder World
http://www-03.ibm.com/innovation/us/watson/
Why milk people when we can milk much more efficient technology....
alstry: Did Mish ban you from spamming your blog on HIS website?
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.
1. Fire traders
2. Buy more high-speed computers.
3. Give all "algos" free health benefits.
Works for me...
GOLD works for me Jonas!
Only 5/6 more to go...
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.
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.
Lloyd B: waiting for a flood of resumes to hit my inbox in 3,2,1 .. same as the day Lehman went tits up
I watched a coupla seconds of video of Blankmind the other day: One EVIL looking MOFO! SCARY.
Soup Lines..... Bitchez!
Brilliance in its simplicity. Great stuff WB7!
I thought I heard a loud flush.
Hassan Chop! Ol' Hassan is going to be up to his turban in work, chopping his ass off for at least the next decade.
cruel Banzai ..but i like it
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.
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.
start at the top please
Honestly, how many people does it take to make sure the server is plugged in?
win!
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.
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...
Don't tell Saint Bernake of Zimbabwe that.
He could lose his status as the patron Saint of zombie insolvent banks at this rate.
it never did add value, except for property insurance
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.
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.
"I'm Mitt Romney and I approved this message"
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
Fine start, so when do the governments join it?
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.
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...
why Polish ?
They're cutting off the cancerous limbs, trying to save the torso.
They're cutting off the limbs, trying to save the cancerous torso.
there, fixed it
Movin movin movin
Keep them doggies rolling
Hey maybe they can get a job in the Swiss Army.
Off topic: thoughts on this event? Seems significant to me.
http://www.telegraph.co.uk/news/worldnews/europe/belgium/9634530/British...
Strange that it happened almost two weeks before before hitting the news.
Really? That seems par for events of importance.
Damn skippy. A celebrity nipple slip is released immediately though, so we have that going for us.
Begining of a trend, hopefully. Don't forget the bankers!
It's curious ... but it's also the Telegraph. The guy was a manager for their Chemical division. Calling him an executive is stretching it a bit, calling him an oil chief is just an outright lie AFAICS
Unemployed Bankers, Shortly
Yer talkin shite!
http://www.youtube.com/watch?v=Q0-94s4NFBw&feature=relmfu
Wow, yet another sleeper account activated this week. Did you enjoy your 51 weeks off?
rut roh
[should comment more]
If Bloomberg thought sales were sluggish before.....geeeez!
Wow...!
Finally some good news for a change.
Good to see the seasonal sackings have started in this sector. Happy Haloween.
Yep, the 'wonderful employment news' should garnish the Feds latest QE3 to 'stimulate employment' magnificiantly
bubble Bens midas touch strikes again
UP WE GO!! (Quick, act surprised)
Fuck you Phill Gramm
UBSoon be homeless.
they would be worth much more as the old Paine Webber
This is only the beginning. Given how the casino is rigged and the absence of retail, I would expect most of the banks to do the same.
I sell research in to quite a few IB's and I've planned my business around that particular income stream going away. It makes absolutely no sense to me that the banks would continue to put out retail research notes and have analysts when virtually all outcomes are fed-controlled. The only reason to keep going is to maintain a facade of legitimacy, and it's getting too expensive to do this, everyone sees through it, and it ultimately doesn't matter.
Massive layoffs after Obama is re-elected. So many companies waiting until the election.
Big business in SNAP, Free cell phones and section 8. More reason for Obama to rob retirement savings.
The Plunge Protection Team is around to buy-up any downturn. No worry about the markets droppping,
Keep Obama in President, you know...
To those soon to be unemployed.
Tough luck guys & gals.
Not.
You get shafted from TPTB just as much as the rest of us plebs. You learn't something today ;)
63.500 bubble blowers in one company. And you were afraid to ask why the world is going under. A huge blowjob. Love you long time....
Not i guess.....
And once again the Dow erases all losses and rallies straight up into the close in the last hour of trading....
FUCKING BULLSHIT.....
That's just Kale Swimmo.
The lone yute.
You misspelled "Oops" you silly Swiss twits.
OT: Bankia released its Q3 numbers (loss of €2.6B in Q3 and €7.1B for the first nine months, tier 1 capital down to 4.7 percent) and while I was not able to find the numbers on their website (maybe because they couldn't find an auditor and Oliver Wyman were too busy?) El País writes:
"Deposits alone fell 14.257 billion euros from the end of September to 98.793 billion as clients lost faith in the lender." This means more Spidy towels, right?
http://elpais.com/elpais/2012/10/26/inenglish/1351270134_620389.html
Once everything is digitized,skynet is up and running, and asset prices are set daily by the politburo there won't be a need for bankers.
I think it is up and running right now. Today was just another day of psyops on the people on this site. Everyone woke up this morning expecting a wreck and here we are again calmly closing up. I can see how people can easily lose it watching this go on day after day. Have a good weekend everyone I gotta get the fk off this thing.
I hear you.. Gold up earlier and the market down...now the market is up and gold is down. I think Amazon could declare bankruptcy and it would still trade up. I miss actual markets. Take care fonz.
Will there be a need for anyone to show up for work?
Obama'd!
It seems like just yesterday when the banksters were saying how they had to use bailout money to pay bonuses because you just couldn't find any banksters to hire.
Cry me a river ...
Seems to me like I've read that some place before ;->
Yes, we seem to be witnessing a healthy bout of market driven capitalism. But then, who would bailout a shitty Swiss bank or Bloomberg for that matter? Answer: Tim and Ben
What do you need people for if a computer can do all your trading?
and a merry christmas to all of them
Damn it feels good to be a... wait?
-10K employees = increase of 2013 exec bonuses
Basel is best served cold.
Well done IRS! You clobbered a big bank investing in USA and there's another load of payroll tax gone!!
if bubble Ben is looking for job growth why pick bwankers to back?
the Feds mandate to address unemployment yet he throws $Trillions at the one bubble sized bloated industry that's assured to be in for a serious pruning in the years ahead
Jeff Immelt, Bummas jobs czar, must see the futility of the Fed backing casino-junky job cutters, he'd know he's been shedding staff at GE afterall... has he not had input into Fed employment policy or at least gone round thumping on Bens office desk how futile nd mis-directed their policies are???
more holes in Fed employment policy than Mar Baker, you'd almost think they were kidding everyone
memo to Sandy
aka MONSTOBER FRANKEISTEIN HURRICANE !!!
this time make sure you FLOOD the heck out of Washington, and NYC !!! not unlike last time, jersey was flooded...= the poor folks got screwed by mother nature
although I must say i don't care for the creeps at jersey shore...don't watch that crap.
"our house!! in the middle of the street our house !!"--madness !!
http://www.youtube.com/watch?v=KwIe_sjKeAY
UBS: Us, or Them
I wonder how many of the scorned have 'backed up' their emails?
'lehman'd'! funny how the worm turns. fuld was not a player at the 'Master's? behest'... he paid dearly with his head!
barclays plc gets the n.a. trading house for cents on the dollar-- a better deal than that from nemesis and [hated] arch-rival dimon's original offer for bs's that had comatose'd the bod cent'd`brains! paulson pleads for some fairness and a reluctant jamie obliges, knowing that the honey-pot is still hanging on an even lower limb? yum, yum!
lehman's banking [ole reliable half?] side goes to rothschild's holding llc., for stink-on-a-stick [might as well given it to them] while nomura laps up the hind-quarter leaked feces.
next shoe to drop is barclays 'bgi', that diamond with a englishman's sleight of hand... palms off to lawrence [the enforcer-arabia] finks-- blackrock, inc. growing portfolio extraordinaire... again at a bargain-basement sale price, cleansing the duopoly-book. fink now is procure and chief masturbatory currently now doing all the bidding for greenspans' bernank, and timmah!
so there you have it-- blk,inc. is king of the world for trading etf's [fix'd passive] and iShares, growing exponentially, whilst working hand-n-hand with the lloyd`sqid, at the helm-- ready at the 'call-to-arms'?
currently blk inc. has under management $3.5tn-- where... well, several years back it was just a child with normal growing pains now an obese teenager with a 'bad-drug-habit'!
so what does this all mean?
there's a big 'House' out there that's about to fall your way, and ubs wants the fiscal arborist to prune and trim so that when the orchards 'big redwood falls', it's out from the shadow of doom. knowing quite, that the few player's left are getting their ducks in a row for the charcoal'd carrion-feast du`jour-- if not tomorrow, perhaps sooner than ye all think`eth!
jmo
Looks like assisting foreigners with evading taxes supported a lot of jobs.
Let me guess, they sold 10,000 superfluous Bloomberg terminals to Wall Street so that's why Bloomberg's sales are down.
Couldn't happen to a nicer bunch of crooks !!!!
Couldn't happen to a better bunch of guys (and gals)...
Jump, you Fuckers
UBS first bought Dillon Reid and the Paine Weber in the US so that their Swiss executives could get US style compensation. Neither ever made any money for the bank, all profits got sucked away in lawyers fees, expensive settlements and political bribes.
What UBS should do is split off the US wealth and investment banks and focus on traditional bank secrecy, strong balance sheets and financial privacy. Unfortunately UBS fouled this nest by getting the Swiss government to piss on banking secrecy to save their necks. And they could never escape the Fed anyway, they are addicted to freshly minted dollars.
Why are zerohedgers so thrilled about the ax getting swung. Most of those let go were not the parasites that we all hate at the top.
UBS = U Bin Sacked
Former (thankfully) Senator Phil Gramm, who spearheaded the repeal of Glass Steagall, landed at UBS upon leaving the Senate. Vice Something. For no doubt very large bucks.
good fucking riddance to useless people of a useless industry. Get a real job like selling pizza or driving cabs so we can finally use your services and don't ever mention you were a banker ever again
UBS is HORRIDLY run - they were still writing credit default swaps on pure crap smortgage backed securities even after most forms wer running away, they grossly overpeid for Paine Webber - one of the worst brokerage firms on the street....
UBS proves that the Swiss aren't the financial geinuses people think they are.
Christmas comes early.