Job fears rise as UBS 'gets set to cut'
When the talk in the City is all of sharpened axes and job losses at the major investment banks, reports of a major cull looming at UBS will do little to soothe the nerves of the masters of the universe today.
The water-cooler chat has it that big cuts on are the way as banks react to sliding investment banking and trading activities by taking a hard look at the cost line. Equities trading desks will be hit hard, the talk goes.
As JPMorgan kicked off the US reporting season today, reports in Switzerland fanned the flames with suggestions UBS was set to reveal 5000 job cuts at second-quarter results this month. UBS is said to have been hit particularly hard by the rise in value of the Swiss franc, which has added to costs and squeezed margins.
UBS, which employs more than 6800 in London and 65,000 overall, labelled the Swiss reports "rumour and speculation" but added cost management "continues to be a priority". A spokesman said: "We review possibilities to improve efficiency and optimise costs on an ongoing basis."
Talk of the UBS cull follows reports that rival Credit Suisse is planning to shed 600 investment banking staff. Morgan Stanley is jettisoning 300 financial advisers, although it denied plans for a more extensive cull. Recent reports suggested Goldman Sachs is planning to go beyond its annual 5% shedding of staff with deeper cuts.
