Latest posts by Julia Shudrik (see all)
- ‘Champagne fraudster’ Alex Hope gets longer jail sentence - 28 Sep 2016
- Credit Suisse names senior adviser - 27 Sep 2016
- UBS axes 56 Luxembourg jobs to save costs - 27 Sep 2016
In order to increase its profitability, Switzerland’s most powerful bank UBS launched a cost-trimming program, according to which 56 jobs were relocated from Luxembourg branch to UBS offices in Wroclaw.
UBS initial plan was to cut 60 jobs in Luxembourg, but having held trade union negotiations, the local bank branch, and the unions agreed to whittle this number down.
Currently, UBS Luxembourg has a team of 420 employees. The banks stated that its target is to minimise the negative effects of the job cuts on its workers and propose other jobs within the bank or early retirement to the affected personnel.
All banks are encountering pressure to trim their expenses in the period of rising regulatory costs, negative interest rates and lagging revenues.
Finance Magnates announced the previous week that in order to trim the costs and improve the bottom line, Barclays had cut 13,600 jobs in the nine months since the arrival of its CEO, which makes it nearly 10 percent of its personnel.
Even though UBS has laid a course for wealth management and away from investment banking following the financial crisis, certain segments of the world’s largest wealth management unit had hiring caps imposed after waning profits back in July on the back of a dismal Q1 profit that sunk -64.0%, resulting in part from a slump at the wealth management and securities units.