UBS AG cut 20 of 48 employees from its securities business in Canada Thursday, including the chief executive and chief economist.
Rick Meslin, head of UBS Securities Canada Inc., and George Vasic, equity strategist, have both left the bank, as confirmed by a UBS spokesperson.
The staffing changes were made in the bank's equity sales, trading and research operations, and are part of a larger cost saving strategy for UBS's investment bank. In October, Switzerland's biggest bank said it would slash 10,000 jobs around the world by 2015 in an effort to combat decreasing revenues and increasing capital requirement rules.
While the Canadian office didn't see any immediate changes after last year's decision, Thursday's layoffs are part of those cuts. Specifically, the bank wants to create an "integrated North American research team," said spokesperson Karina Byrne.
Ms. Byrne said equity research (especially in certain sectors, such as mining) continues to be one of the bank's core businesses, and the Canadian market will still be covered from both Canada and the U.S. Most of the cuts were made in the company's Toronto office. UBS still has about 230 employees working in its various units across the country.
New leadership changes are already being announced. Lisa Petrelli will become the new head of Canadian equities. She was formerly co-head of Canadian cash equity trading. The bank has also appointed Brian MacArthur as director of research.
And UBS isn't the only bank making changes today.
CIBC also let go a small number of people from its trading department, said to be four employees, amid a tough market for equity trading. A CIBC spokesman declined to confirm the number, but stressed that the bank is not changing its overall headcount in the securities business.
(Boyd Erman is a Globe and Mail Capital Markets Reporter & Streetwise Columnist.)
(Jacqueline Nelson is a Globe and Mail Financial Services Reporter.)
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