UBS AG, Switzerland’s largest bank, will cut as many as 10,000 jobs across the firm as the trading business shrinks, a person with knowledge of the plan said.
Many of the reductions will come in the trading businesses overseen by investment-bank co-head Carsten Kengeter and are likely to occur over several quarters, said the person, who requested anonymity because the plans haven’t been publicly detailed. An announcement may come when UBS reports third- quarter earnings Oct. 30.
Chief Executive Officer 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. UBS is in the process of cutting risk-weighted assets at the investment bank by more than half from September 2011 levels, mostly in fixed income.
UBS had about 63,250 employees as of June 30, according to the firm’s most-recent financial report. On that basis, the reductions might amount to about 16 percent of its work force.
The cuts were reported earlier Friday by the Financial Times. The specific number is still unclear as the impact on back-office operations has yet to be determined, the FT said. The eliminations will lead to senior-management changes and reduce costs in the bank’s support functions including information technology, the FT said.
Serge Steiner, a spokesman for the bank, declined to comment. Ermotti has been working on a so-called industrialization project since taking office last year, seeking to cut production costs across all of the bank’s businesses.
The bank also has weighed a shakeup at the top of its investment bank that would give a reduced role to Kengeter, 45, and more responsibilities to his 49-year-old co-head, Andrea Orcel, three people with knowledge of the matter said this week.
The firm’s boards were meeting in New York this week to consider a reorganization of the unit that will include cuts centered on the fixed-income operations that Kengeter has been responsible for since 2008, the people said.
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