UBS has announced a major a cost-cutting overhaul that will eliminate 10,000 jobs. The positions will be eliminated mostly from its investment banking division. UBS cited increased regulatory capital requirements and persistent problems in the global economy as reasons for the cuts. The move also follows scandals involving the investment banking division, including a $2.3 billion trading loss that UBS attributed to a former trader and LIBOR manipulation charges.
The reductions will reportedly eliminate most of UBS’s fixed-income businesses, which the bank said had become unprofitable. A smaller investment banking division is expected to concentrate on advisory services, research, equities, foreign exchange and precious metals (“UBS to Cut 10,000 Jobs in Major Overhaul,” New York Times DealBook).
UBS has apparently already informed some employees that their positions are being eliminated. The moves will result in job reductions of approximately 16 percent over the next two years. That reduction is on top of the 3,500 jobs cut last year.
The bank’s London offices will reportedly bear 45 percent of the job losses (4,500 jobs). Next in line are 2,500 jobs from the bank’s Swiss operations. The remaining cuts will be made in UBS’s division in the United States.
Analysts expect other big banks will soon implement similar reductions.
Employees who may be affected by such decisions should consult with an attorney experienced in representing registered representatives in employment-related matters. Generally, the sooner an attorney gets involved, the more effective the representation can be.
Page Perry attorneys have successfully handled employment law disputes involving employee bonuses and loans, constructive termination, restrictive covenants and non-compete agreements, confidentiality agreements, stock option agreements, age, race and gender discrimination, and severance packages. In the past several years, the firm has won arbitration awards for clients in employment disputes in the amounts of $1.7 and $3.9 million.
Page Perry also has an active regulatory and compliance practice, which advises clients on issues involving formation, regulation, reporting, advertising, supervision, and policies and procedures of registered investment advisors and broker-dealers.
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