There's more bad news in the wirehouse space. On Tuesday, UBS
said it plans to cut approximately 3,500 jobs by the end of 2013, and 10 percent of the headcount reductions will come from UBS Wealth Management
Roughly 45 percent will come from the investment bank, 35 percent from wealth managment & Swiss Bank and 10 percent from global asset management.
UBS' announcement was picked up media outlets including
The Wall Street Journal
Company Press Release
Zurich / Basel, August 23, 2011, 07:00 AM
UBS update on cost reduction plans
UBS today provides an update on its plans to eliminate expenses of a total of approximately CHF 2 billion from annual costs by the end of 2013, consistent with our announcement on July 26, 2011. These plans include savings associated with headcount reductions of approximately 3,500, which will be achieved through redundancies as well as natural attrition, and further real estate rationalization.
UBS expects to recognize restructuring charges of approximately CHF 550 million in connection with its cost reduction plans, approximately CHF 450 million of which will be booked in the second half of 2011. The substantial majority of the expected CHF 450 million charge will be recognized in the third quarter of 2011. The restructuring charges reflect costs related both to personnel (approximately CHF 400 million) and to real estate (approximately CHF 150 million).
Of the expected CHF 550 million in restructuring charges, approximately 55% is expected to be incurred in the Investment Bank, 30% in Wealth Management & Swiss Bank, 10% in Global Asset Management, and 5% in Wealth Management Americas.
Of the expected 3,500 staff reductions, approximately 45% will come from the Investment Bank, 35% from Wealth Management & Swiss Bank, 10% from Global Asset Management, and 10% from Wealth Management Americas.
These numbers include Corporate Center headcount and charges allocated to the business divisions. The actual number of redundancies is subject to employee consultation as required under the applicable local rules.
The measures announced today are designed to improve operating efficiency. UBS will continue to be vigilant in managing its cost base while remaining committed to investing in growth areas.
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