If your employment with the Swiss bank falls in the investment bank, consider getting to keep your job this year's bonus.
Sergio P. Ermotti, who has been at the helm for less than a month, has ruled out a sale or spinoff of the investment bank but has decided to significantly reduce its scope and size in order to bolster UBS's focus on its giant wealth management business, according to people familiar with his thinking. The brunt of the proposed changes are expected to be felt in parts of the investment bank's fixed-income business, the people familiar with the matter said. UBS's investment bank employed 17,776 people around the world at the end of June, according to regulatory filings. The unit has a large presence in the U.S., where it employs thousands of traders and bankers, largely based in New York and Stamford, Conn., where it boasts one of the world's largest trading floors.
In the summer, UBS announced plans for 3,500 layoffs, with around half of the job losses coming from the investment bank. It is unclear how many additional jobs would be affected by Mr. Ermotti's proposed shake-up...Traders and bankers have already been bracing for job losses and much lower bonuses, and the announcement of Mr. Ermotti's plans is likely to deepen those fears.