Saturday, October 27, 2012

Layoff Watch: Top Firm Shrinks, Plans 10,000 Job Cuts



Switzerland’s largest bank, will cut as many as 10,000 jobs companywide as the trading business shrinks, a person with knowledge of the plan told Bloomberg.

Many of the reductions will come in the trading businesses overseen by investment-bank co-head Carsten Kengeter and probably will occur over several quarters, said the person, who requested anonymity because the plans haven’t been publicly announced. An announcement may come when UBS reports third- quarter earnings on Oct. 30, the person said.

CEO Sergio Ermotti, 52, is overhauling the bank as Swiss regulators pressure UBS and Credit Suisse Group AG to boost capital and scale back trading and investment- banking operations. Like rival securities firms, UBS has been struggling to boost profitability as client activity and trading remain sluggish.

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