UBS wants to reorganize its wealth-management business, the most important operative pillar. Job cuts and management changes are part of the plan.
UBS aims to cut costs at Wealth Management by several hundred million francs. The announcement was part of an internal memo sent to the staff by Juerg Zeltner, head of the unit, according to a report by «Reuters».
The new structure will lead to more efficiency and a reduction of the headcount, the news organization said. The reorganization will combine various wealth-management back office functions into one centralized unit.
Even before today's quarterly report, insiders said the bank wanted to cut job at the wealth-management business.
Back Offices Reductions
«Reducing complexity will lead to some delayering and reductions in personnel, predominately in non-client facing areas, and decreasing our cost run rate by hundreds of millions,» Zeltner told his staff in the memo today. «The new structure will come into effect on July 1st 2016 and I want to create clarity as fast as possible.»
UBS confirmed the content of the memo without specifying how many jobs it planned to cut.
Apart from the changes affecting the back offices, UBS will also merge the wealth-management unit of Europe and Emerging Markets. The new unit will be managed by Paul Raphael, the head of the Emerging Markets unit.
Jakob Stott, head of wealth management in Europe, will assume the role of chairman Wealth Management Europe. He will also be deputy chairman of a unit focussing on global key customers.
