UBS Group AG is telling executives in its large wealth management business to be more selective when hiring bankers as it seeks to cut costs following a challenging first quarter, according to people familiar with the matter.
The bank has introduced an informal rule to allow hiring of one back-office employee only if five are leaving, the people said, asking not to be identified because the matter is private.
For client-facing staff, the rule is less strict: Managers can hire one banker for two departing ones, the people said.
A spokesman for the bank declined to comment.
Chief Executive Officer Sergio Ermotti has been hit by a slew of bad news, ranging from investor discontent with his strategy to the departure of his former investment bank head to a $5 billion penalty in a French tax case.