Layoffs

  • UBS

    News

    Layoffs Watch ’12: UBS Tells Employees Not To Bother Themselves With Figuring Out How To Get Into Work (Ever Again)

    Earlier this week, before a natural disaster struck the East Coast, UBS announced that it would essentially be getting out of the investment banking business and focusing its energy on wealth management, letting go of approximately 10,000 employees as it transitioned back to its tax evading roots. That was Monday morning, and while the bank had said that it planned to start cuts on Tuesday, most people assumed that the Swiss would wait at least 24 hours between the time Connecticut Governor Dannel Malloy told residents to seek safety from the storm on their roofs, or power for the many who lost it was restored, to can a bunch of staff. Those people, however, thought wrong. Apparently when UBS decides to do something, neither wind nor rain nor is gonna stop them.

    / Oct 31, 2012 at 10:11 AM
  • ubs_1396475c

    News

    Layoffs Watch ’12: UBS Has Something To Share

    Management has decided to burn the investment bank down and start fresh. Basically.

    UBS is set to unveil a radical downsizing of its struggling investment bank next week in a move that will prompt the loss of up to 10,000 jobs across the Swiss banking group. Switzerland’s largest bank by assets will significantly shrink the trading side and complexity of its investment bank and as a consequence also cut thousands of jobs in its back office over the next few years, three people close to the situation said. The job cuts will amount to almost a sixth of the bank’s workforce of 63,500 at the end of June. They will not happen all at once and the precise number is still unclear… It comes on top of another – still ongoing – programme announced last year to cut 3,500 jobs. The new strategy, hammered out in several executive board meetings in New York this week and set to be announced next Tuesday, will lead to the closure of a sizeable part of UBS’s fixed-income trading operations and other capital-intensive areas of the investment bank.

    UBS To Cut Up To 10,000 Jobs [FT]
    Related: UBS’s Investment Banking Head May Have To Slash His Own Expenses “Like A Jewish Shopkeeper”

    / Oct 26, 2012 at 3:51 PM
  • News

    Layoffs/Hiring Watch ’12: UBS

    The Swiss bank is said to be planning a big round of cuts in the investment bank with the aim of saving a bunch of money, which it will then spend on luring in “more promising talent.”

    is embarking on a new round of job cuts within its investment bank, according to people familiar with the matter, as the Swiss bank grapples with a downturn in business that shows few signs of abating and considers a further restructuring of the division. UBS will begin notifying employees Wednesday of a new round of job cuts totaling roughly 400, the people said. Additional job losses that could run into the thousands may quickly follow. According to one of the people, there is a “good probability” that when UBS discloses its third-quarter results next Tuesday, it will make clear which businesses it intends to focus on in the years to come, and which ones it will de-emphasize…This week’s jobs cut will be spread roughly evenly across North America, Europe and Asia, one of the people said. They will fall more or less evenly on fixed-income trading, equity trading and corporate finance, although the latter will bear slightly more of the brunt than the former two divisions.

    While these job cuts are mainly mean to cut costs, they are also part of a plan to cull the worst performers from the investment bank’s ranks and create room for it to hire more-promising talent, one of the people said.

    UBS Plans More Job Cuts [WSJ]

    / Oct 23, 2012 at 3:39 PM
  • News

    Layoffs Watch ’12: Barclays

    Cuts are said to have gone down with more a-comin’.

    Barclays PLC is cutting about 50 employees from its equities business, the latest effort by the British bank to reduce costs at its investment-banking arm. A week ago, the U.K. lender announced internally that about 10% of the jobs at its equities business across Europe, Africa and the Middle East would be lost, a person familiar with the matter said Friday. During the first half of the year, Barclays’s equities and prime services business, which employs about 500 people, saw revenue fall 12% on the year to £973 million ($1.57 billion). The business has suffered as market volumes have dried up in recent quarters…The work-force reduction could be a taste of things to come for Barclays’s investment bank. At the beginning of 2009, former Barclays Chief Executive Bob Diamond hired more than 400 bankers, mainly in equities and research, as part of a drive to turn the predominately debt-focused bank into a multi-asset powerhouse. Following Mr. Diamond’s departure in the wake of a rate-fixing probe, new CEO Antony Jenkins has started a review of the bank’s businesses to assess their profitability and whether and how they affect the lender’s reputation. This, combined with tougher regulatory requirements, is expected to result in Barclays shrinking its investment bank, analysts say.

    Barclays To Cut 50 Equities Jobs [WSJ]

    / Oct 19, 2012 at 6:26 PM
  • News

    Layoffs Watch ’12: Brian Moynihan Wasn’t Joking About Cutting Thousands Of Employees

    Would’ve been quite the gag but no, he was serious, in case there was a question in anyone’s mind.

    Wall Street workers got another warning shot across the bow as the nation’s biggest banks gear up to report third-quarter results beginning today. Bank of America chief Brian Moynihan yesterday said that he planned to make good on a springtime plan to cut a whopping 30,000 workers from the sprawling Charlotte, NC-based bank’s work force. “As we continue to get through the mortgage issues at Countrywide, you’ll see the head count come down substantially,” Moynihan told Bloomberg Television. Moynihan has been struggling to put the lumbering bank on a diet and shed nonessential businesses and workers in an effort to reverse the course embarked upon by his predecessor, Ken Lewis. The former CEO hastily gobbled up mortgage giant Countrywide Financial and Merrill Lynch at the height of the financial crisis. In a plan dubbed “New BAC,” Moynihan’s pink-slip program will trim 10 percent from its work force of 275,000.

    [NYP]

    / Oct 12, 2012 at 12:56 PM
  • News

    Layoffs/Bonus Watch ’12/13: Morgan Stanley

    Back in January, Morgan Stanley CEO James Gorman sent a simple messages to his employees, who had been grumbling about their pay: STFU or GTFO. “You’re naive, read the newspaper, No.1,” Gorman told Bloomberg he would say to any members of his staff that wanted to give him lip about their compensation to his face. “No. 2, if you put your compensation in a one-year context to define your over all level of happiness, you have a problem which is much bigger than this job. And No. 3, if you’re really unhappy, just leave.” Today, in an interview with the FT, Gorman reiterated his stance and added that in addition to reducing compensation for current employees, the bank will likely be drastically cutting pay for future analysts. If anyone has a problem with that, consider applying for a gig at Bank of Mythical Pre-Crisis Era Bonuses. Alternatively, Gorman is happy to discuss a compensation plan in which you’ll be awarded shares of his foot in your ass, which vest immediately.

    In the latest sign of the pressure Wall Street is under to cut costs and address high pay levels, James Gorman, chief executive, said that staff and remuneration would have to be sacrificed as banks cope with lower profits. “There’s way too much capacity and compensation is way too high,” Mr Gorman said in an interview with the Financial Times. “As a shareholder I’m sort of sympathetic to the shareholder view that the industry is still overpaid.”

    Morgan Stanley itself is already axing 4,000 jobs, 7 per cent of its workforce, by the end of this year. In the new year, Mr Gorman said, the bank will consider its next round of cost-cutting, including lower pay and bonuses. News of further pay cuts, including potentially for new entrants at the investment bank, comes just weeks after Goldman Sachs confirmed it was overhauling its well-known entry-level programme for analysts. Goldman was said to have tired of the number of analysts in the programme who left the bank for hedge funds. Mr Gorman said that Morgan Stanley will probably keep its own analyst programme, but pay could be reduced significantly.

    Morgan Stanley Chief Warns On Wall Street Pay [FT]
    Earlier: James Gorman To Employees: STFU Or GTFO

    / Oct 5, 2012 at 11:48 AM
  • News

    Layoffs Watch ’12: Bank Of America Australia

    The House of Moynihan has said goodbye to a bunch of employees down under.

    Bank of America Merrill Lynch has begun a new round of job cuts in Australia, a person familiar with the matter told Deal Journal Australia, becoming the latest investment bank to cut costs amid light deal flow and sluggish equity markets due to the stuttering global economic recovery. Fewer than 10 staff from the bank’s equities sales and trading division have been let go, the person said, without elaborating further.

    Bank of America Merrill Lynch Cuts Staff in Australia [Deal Journal]

    / Sep 27, 2012 at 5:24 PM
  • News

    Bank Of America To Fire A Bunch Of Employees Just For Fun

    Actually, we don’t know several dozen employees in  the bank’s global markets unit in Asia are going to be fired, only that these cuts are not part of Project New BAC (the company’s plan to save $8 billion by laying off 40,000), so “just for fun” is one possibility.

    Bank of America plans to cut about 40 jobs at its global markets unit in Asia, a person with knowledge of the matter said. The reductions aren’t part of the Project New BAC program announced last year to pare expenses, according to the person, who asked not to be identified because the matter is confidential and declined to provide additional details. Shirley Wong, a Hong Kong-based spokeswoman for the Charlotte, North Carolina-based bank, declined to comment.

    [Bloomberg]

    / Sep 26, 2012 at 7:18 PM
  • News

    Layoffs Watch ’12: Bank of America

    More cuts are expected at the House of Moynihan this week.

    “Project New BAC axe is rumored to be coming out tomorrow. Expecting major headcount reduction in Equity Sales + Trading amongst other things.”

    / Sep 26, 2012 at 3:10 PM
  • News

    Layoffs Watch ’12: RBS

    Like Bank of America, RBS has some big goals for the coming year, chief among them being the firing of several thousand investment bankers. (For those skeptical they can do it, according to a PowerPoint presentation presented yesterday, re: the “exits,” quite a bit of progress has already been made.)

    Royal Bank of Scotland, Britain’s biggest government-owned lender, said it will cut 300 more jobs at its investment banking unit and is “on track” with its plan to exit businesses. RBS will eliminate 3,800 jobs at the division by the fourth quarter of next year, compared with an earlier target of 3,500, according to slides based on a presentation delivered by John Hourican, chief of markets and international banking, to analysts Monday. About 3,000 of the cuts will have completed this year, RBS said…The bank’s control of costs is “ongoing,” said Chris Kyle, chief financial officer of markets and international banking, at the presentation. “We will almost certainly hit this year’s number” in terms of the guidance, he said.

    Royal Bank Of Scotland Cuts 300 More Jobs At Investment Bank [Bloomberg]
    RBS Markets Investor Roundtable [RBS]

    / Sep 25, 2012 at 12:56 PM
  • News

    Layoffs Watch ’12: Nomura

    London employees are not the only ones being sat down for uncomfortable conversations.

    “FYI: Heavy cuts at Nomura across banking and equities today in the US as well.”

    / Sep 20, 2012 at 1:25 PM
  • News

    Bank Of America Hoping To Fire Thousands Of Employees In Record Time

    Remember Project New BAC, i.e. Bank of America’s plan to transform itself from Ken Lewis’s house of fun, where everyone went home happy but the concept of making money was less of a focus than keeping the good times coming, to an institution that did things like post profits? The bank has said previously that PNBAC “will result in $8 billion in annual savings by 2015—$5 billion from the first phase and $3 billion from a second phase” and while it stands by those figures and remains committed to cutting as many employees as it takes, some people would like them to be a bit snappier about it.

    Bank of America is accelerating a broad cost-cutting plan and has set a target of shedding 16,000 jobs by year’s end—cuts that would see the company relinquish its title as U.S. banking’s largest employer. The proposed year-end total of 260,000 would be the lowest count since 2008 and likely give Bank of America a smaller workforce than JPMorgan Chase, Citigroup, or Wells Fargo…Chief Executive Brian Moynihan is trying to speed the company’s transformation into a smaller and more efficient operation as he tries to persuade investors that expenses can be adjusted to compensate for revenue lost to new regulations, an uneven economy and shaky markets. Since becoming CEO in 2010, he has shifted away from a nationwide expansion strategy embraced by his predecessors Hugh L. McColl Jr. and Kenneth D. Lewis, and shed many of the businesses that he considers to be nonessential…Hitting the new staffing target would fulfill a year early Mr. Moynihan’s pledge to slash the bank’s workforce by approximately 30,000. “If they want to make any headway toward improving profitability,” said Sterne Agee & Leach Inc. senior banking analyst Todd Hagerman, “they need to accelerate the timeline.”

    Bank Of America Ramps Up Job Cuts [WSJ]

    / Sep 20, 2012 at 8:39 AM
  • News

    Layoffs Watch ’12: Nomura

    Employees are said to be expecting something resembling a massacre tomorrow around 10 or so, depending on when people roll into the office.

    From the front lines:

    “Nomura London cuts happening tomorrow starting 10ish. It’s going to be a bloodbath.”

    / Sep 19, 2012 at 6:25 PM
  • News

    Layoffs Watch ’12: Everyone

    According to Meredith Whitney, banks will be cutting another 100,000 employees in the near to […]

    / Sep 19, 2012 at 4:22 PM
  • News

    Layoffs Watch ’12: UBS

    UBS is said to be embarking on a “fresh round of cuts” in the investment bank, starting with the team in Europe.

    UBS, Switzerland’s biggest bank, plans to cut about 80 to 90 jobs in its European investment- banking division as part of a global revamp, according to two people familiar with the matter. The cutbacks, which are likely to take place before year- end, would amount to about 17 percent of staff within the region’s investment-banking division and include junior and senior bankers, said the people, who asked not to be identified because the plans are private. The division includes merger advisory and equity and debt capital markets. The reductions probably will kick off a fresh round of job cuts within the broader investment bank, which includes UBS’s fixed-income and equities units, said the people.

    [Bloomberg]

    / Sep 18, 2012 at 6:38 PM
  • News

    Layoffs Watch ’12: Nomura

    The company is still in the firing phase of the rebuilding process.

    Nomura Holdings cut a team of London proprietary traders focused on stocks as Japan’s largest brokerage scales back in Europe, said two people with knowledge of the matter. The group of about five traders was part of Nomura’s Angel Lane Principal Strategies, a unit that makes speculative wagers on markets with capital provided by the Tokyo-based bank, according to the people, who declined to be identified because the job cuts haven’t been announced. The team departing this week was led by Anthony Medina, a volatility trader who used options to bet on fluctuations in the prices of stocks, the people said. The departures are part of Nomura’s plan to reduce costs by $1 billion, with almost half the savings coming from Europe. The revamp in strategy follows a four-year struggle to build a business overseas following the purchase of Lehman Brothers Holdings Inc.’s European and Asian units in 2008.

    Nomura Said To Cut Team Of Proprietary Traders Focused On Stocks [Bloomberg]

    / Sep 14, 2012 at 3:29 PM
  • News

    Layoffs Watch ’12: UBS?

    Cuts are said to be coming in the near-ish future.

    “More layoffs are expected to take place within the next 2-3 weeks with at least 10pct cuts across the board in sales, research and trading. Morale has reached a new all-time low (hard to imagine it could become lower?) and at this point many have the attitude that if they get out now at least they’ll get a package out of it.”

    / Sep 13, 2012 at 3:50 PM
  • Hedge Funds

    Louis Bacon Recruits Brother To Have Tough Conversations With Employees Re: The Fact That They No Longer Work At The Firm

    One thing you may or may not know about hedge fund manager Louis Bacon is that he likes to keep his human interactions to a minimum. It’s not a personal thing, just people in general thing. He doesn’t like ’em and he doesn’t want to talk to or look at ’em. For example, rather than taking five minutes to tell a subordinate he disagrees with a trade idea, Bacon has been known instead to “retreat to his office and place an opposing trade, a tactic known as ‘fading’ a colleague.” Clients are treated similarly (“During meetings with…investors, Bacon, who often draws the blinds in his private office, frequently turns to his lieutenants to answer questions, often sitting silently through presentations“) and if you thought that being, say the fruit of his loins meant special treatment, you were sorely mistaken (“One longtime assistant negotiates annual spending allowances with the elder of his children individually…Once they’ve agreed on the number, the assistant invites the child for a sit-down meeting with his or her father, during which Bacon usually signs off on the terms“). So it probably did not come as much of a surprise when LB hired his brother, the improbably named Zack Hampton Bacon III, to speak with a dozen or so members of the staff re: security waiting to escort them out of the building.

    Moore Capital Management LLC, the $15 billion hedge fund run by Louis Moore Bacon, cut 10 to 15 investment jobs as it restructures one of its equity teams, according to three people with knowledge of the matter. The portfolio managers and research analysts were let go on Sept. 11, said one of the people, who asked not to be identified because the information is private. Patrick Clifford, a spokesman for New York-based Moore, declined to comment.

    “Apart from a few hedge funds, it’s not that typical to see a large reduction in headcount in the industry,” said Ronen Schwartzman, founder of Ten Capital Advisors LLC, a New York- based firm that advises clients on investing in hedge funds. “Performance must be having an impact.” Bacon, 56, hired his older brother, Zack Hampton Bacon III, in February to oversee strategic planning, a person briefed on the matter said that month. Bacon told clients last month that he planned to return $2 billion, or about 25 percent of his main fund, to investors, saying it may be too big for him to generate returns in line with historic profits as “liquidity and opportunities have become more constrained.”

    On the bright side, no one was “sprayed in the face” with lead pellets, so not all bad.

    Moore Said to Reduce Positions Amid Equity Restructuring [Bloomberg]
    Related: Louis Bacon Has Better Things To Do Than Explain How Big An Idiot You Are

    / Sep 13, 2012 at 12:40 PM
  • News

    Layoffs Watch ’12: Deutsche Bank

    The Germans are “going on a diet” that will involve a “painstaking, methodical, meticulous approach to boosting efficiency” and “very significantly streamlining” in the investment bank and no one, not even the people hiding out in Chicago are safe.

    “Yet more DB cuts: 3 directors, 1 managing director and 1 vp in Chicago last week.”

    [MarketWatch]

    / Sep 12, 2012 at 7:36 PM
  • News

    Deutsche Bank Had A Bunch Of Tough Good-Byes Today

    In addition to cuts in the Industrials; M&A; Real Estate, Gaming, Leisure & Lodging; and […]

    / Sep 10, 2012 at 6:22 PM
  • News

    Layoffs Watch ’12: Deutsche Bank

    Cuts are said to have gone down in DB IBD.

    From the front lines:

    “Yet another round of layoffs here (2nd / 3rd round in most groups). Following the same pattern of 2-3 per group to avoid big news. All levels affected. Another possible round coming before year end.”

    / Sep 10, 2012 at 1:03 PM
  • News

    Layoffs Watch ’12: UBS Is Changing The Way We Do Things Things Around Here

    Fewer bodies, more often.

    “UBS now performs rolling layoffs instead of going in rounds. Each mini-round is therefore less newsworthy. Normally this kind of thing destroys morale but there’s no morale left to destroy at this point. How frequent are they? Equities had 4 rounds in 3 weeks in April(ish). Previously you would see every group get hit at once, no more than a couple times a year.”

    / Sep 7, 2012 at 6:36 PM
  • News

    Layoffs Watch ’12: Deutsche Bank, Barclays, Nomura, Credit Suisse, UBS

    Things could be better in Europe.

    Big investment banks in Europe, including Nomura, Credit Suisse and UBS, are stepping up plans to cut jobs as they seek to adapt to a drastic slowdown in revenues and tighter regulation. Bank executives, headhunters and analysts say that the cuts are shaping up as the deepest since the start of the financial crisis after a disappointing summer dashed hopes of a business revival. One senior headhunter said many large investment banks will have “at least 20 per cent” fewer staff in capital markets and M&A advisory business in Europe by the end of the year compared with late 2011. “It [the market] has never been as bad as this. Bankers have long lost confidence in their banks but now they are also losing their self-confidence, their mojo,” a senior advisory banker said.

    Among the banks that will reduce their investment banking workforce is Japan’s Nomura, where London-based bankers say that they expect several hundred jobs to be removed in Europe alone as part of a $1bn cost-cutting effort. Switzerland’s largest bank UBS, which cut staff levels earlier than rivals by announcing 2,000 job cuts in the investment bank after a $2.3bn unauthorised trading loss last year, is preparing for intensified cuts as it is seeking to streamline further the unit, several people familiar with the situation said. At Credit Suisse, insiders estimate that the additional SFr1bn ($1bn) in groupwide cuts that were announced in July will translate into up to 1,000 jobs being lost, most of which would be in the investment bank. Analysts expect also Deutsche Bank and Barclays to reduce their headcount further this year. Deutsche said two months ago it would reduce staff levels by 1,900.

    Investment Banks Eye Europe Job Cuts [FT]

    / Sep 7, 2012 at 1:44 PM
  • News

    Layoffs Watch ’12: Morgan Stanley

    Employees within fixed income may need to find room at another inn.

    People inside Morgan Stanley are bracing for layoffs in the fixed income department. Sources inside Morgan Stanley say people within the fixed income business are expecting a dramatic downsizing of that business. They are not thinking about a total exit, maybe exiting certain parts of it, spinning those off if they can, but clearly a radical downsizing.

    MS Planning Layoffs [FBN]

    / Sep 6, 2012 at 5:41 PM
  • News

    Layoffs Watch ’12: Nomura

    Nomura is said to be encouraging people in equities to consider their options elsewhere but […]

    / Sep 6, 2012 at 3:18 PM
  • News

    Layoffs Watch ’12: Deutsche Bank Not Yet Finished Telling Employees To Hit The Bricks

    These things take time.

    Deutsche Bank is eliminating about 85 jobs at its Japan and Hong Kong equities units as Europe’s widening debt crisis curbs economic growth in Asia. The bank cut about 15 positions in Tokyo yesterday, and plans to tell 30 employees in equity research, sales and trading today that they will be dismissed, three people with knowledge of the matter said. The Frankfurt-based company trimmed 40 jobs in Hong Kong yesterday, according to another person, who asked not to be identified because the information is private.

    [Bloomberg]

    / Sep 5, 2012 at 2:47 PM
  • News

    Layoffs Watch ’12: Deutsche Bank

    The Germans are not yet done firing employees in Asia.

    Deutsche Bank fired around a third of the staff in its Asia equity derivatives business on Tuesday, as part of a global cost savings plan announced on July 31, according to sources familiar with the matter. Just over 20 people remain in the division, down from a number in the mid 30s, according to one source, as Deutsche Bank and others seek to cut costs in businesses that are failing to generate adequate revenues as the global economy slows. The bank let go five traders, four product structurers and at least one salesperson from the division, the sources said, adding that the numbers were not yet finalised because the discussions were continuing…These cuts follow on the heels of layoffs in June in Deutsche Bank’s Asian equities business, which like its counterparts at other firms globally has been struggling this summer due to slack trading volumes and a sharp decline in new share issuance.

    Deutsche Bank cuts a third of jobs in Asia equity derivs [Reuters]

    / Sep 4, 2012 at 1:44 PM
  • News

    Hire This Guy’s Wife And/Or Steal The Idea For Your Own Job Search

    As the results of a recent survey given to Harvard Business School’s Class of 1986 […]

    / Aug 31, 2012 at 3:11 PM