No one likes layoffs, but the new cuts at UBS just couldn’t be avoided.
On Tuesday, the investment bank formally announced that it would lay off 10,000 staff. By 2015, its global head count is expected to be 54,000, down from 64,000 today.
The message is clear: UBS is de-risking. Management is slashing its exposure to speculative assets, so much so that the investment bank’s risk-weighted assets are expected to fall to CHF 70-billion in five years, shedding a whopping CHF 90-billion over that time period.