Costs are there to be cut!
UBS, which said last month it’s looking for ways to cut costs, is eliminating some management positions in its U.S. wealth unit and reducing the number of financial advisers recruited from competitors.
Bloomberg News reports that the headcount reduction will mostly hit middle and senior managers, including some at the unit’s main offices in Weehawken, New Jersey, and New York, Tom Naratil, president of wealth management for UBS in the Americas, said in an interview. UBS declined to provide a specific number of cuts. The role of regional manager also will be eliminated, with some promoted and others reassigned, the lender said Wednesday in an internal memo.
The bank plans to decrease by 40% the number of financial advisers it recruits from competitors and how much it spends on those efforts starting this month, Naratil said. UBS declined to give current recruiting figures. The bank scooped updozens of advisers last year when Credit Suisse exited U.S. wealth management.
And Goldman Sachs has cut staff in Russia in the past few months and more cuts are expected by the end of the summer, sources familiar with the layoffs told Reuters.