Switzerland’s largest bank and second largest wealth manager, UBS, is going to look very different when CEO Sergio Ermotti gets through with it.
Among the actions planned by the man who took over after the bank lost $2.3 billion in unauthorized trades are job cuts totaling 10,000 and trading and investment banking operations cutbacks that include a reduction in risk-weighted assets of 100 billion Swiss francs ($107 billion).
The announcement comes on the heels of a reduction in duties for investment-bank co-head Carsten Kengeter, who, it was announced Friday, would see a reduction in responsibilities as co-head Andrea Orcel correspondingly sees his own rise. Bloomberg reported that the fixed-income segment of the unit run by the two could be cut, with Orcel getting the lion’s share of the responsibility for what remains.
The actions are seen as a return to the advisory business begun by Siegmund Warburg, founder of S.G. Warburg & Co., and acquired by Swiss Bank Corp. in 1995 to form UBS.