UBS wealth management starts cutting jobs in Asia and Europe

Pedestrians walk past the entrance to UBS Group AG's headquarters in Zurich, Switzerland. Photographer: Philipp Schmidli/Bloomberg

UBS Group AG started a sweeping round of job cuts at its global wealth management unit in Europe and Asia, targeting dismissals across the board as new co-head Iqbal Khan seeks to make his mark on the business.

UBS has cut as much as 20% of the workforce in some European teams and is reducing management layers in Asia to bring clients closer to top decision-makers, people with knowledge of the matter said, asking not to be identified as the matter is private. Asia has introduced a new organizational structure and will be followed by Western Europe, Central & Eastern Europe, Middle East & Africa. Job losses are taking place at every level from managing directors to assistants, the people said.

Khan and co-head Tom Naratil are restructuring UBS’s most important business to rein in costs and speed up decision making after Chief Executive Officer Sergio Ermotti gave them 60 days to devise a plan to turn around the unit. While UBS hasn’t communicated the extent of the cuts, people familiar with the matter have said it will likely affect about 500 employees. That comes after thousands of investment banking dismissals over the past decade as UBS pivoted toward private banking.

As part of the changes, UBS is dismantling a unit dedicated to the ultra rich — moving some client advisers into the regional divisions and others into its Globally Family Office unit — while also dividing the EMEA wealth business into three regions.

Khan pursued a regional strategy when he ran the international wealth management unit at Credit Suisse, splitting his division into seven regions to boost local decision-making. Now he and Naratil are doing the same at UBS, some two years after the bank merged its Americas and global wealth units into a single business.

“We are taking steps to make it easier and faster for our clients to do business with UBS,” the bank said in a statement. “Those changes impact a small number of roles.”

UBS wants to hand more decision making power to its client advisers and reduce the time previously spent going through as many as seven layers of managers for approvals, people familiar with the reorganization said earlier.

The U.S. and Switzerland are likely to be less affected by the restructuring at the wealth management division, one person said.

Khan is also working on other changes at the business, saying UBS could score “quick wins” by increasing lending, a strategy he also used at Credit Suisse. The bank is targeting $20 billion to $30 billion in net new loans per year.

To help speed up time-consuming negotiations between wealth managers and the investment bank, UBS also plans to manage loans originated in the wealth unit through a separate risk book in its investment bank. It’s eliminating a unit within wealth management called Investment Products and Solutions (IPS) that was the primary engine for coming up with financing structures and investment products.

Much of the work done by the IPS unit mimicked the investment bank and resulted in duplication of certain jobs such as those in structuring, sales and trading, which will now be part of a next round of job eliminations, said people with knowledge of the matter.

Bloomberg

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.