'We are exactly where we should be to face the environment that we have'.
UBS’s investment bank workforce is the right size after thousands of job cuts in recent years, even as challenges emerge from the U.K.’s vote to leave the European Union, division president Andrea Orcel said.
“We are exactly where we should be to face the environment that we have, to face the regulation that we have,” Orcel said when asked about the potential for more dismissals in a Bloomberg Television interview with Erik Schatzker for broadcast Tuesday. The firm was still paring staff just a few months ago.
Bloomberg News reports that Orcel listed caveats: Further tightening of regulation, a worsening of market conditions or harder competition could force the bank to make more cuts. The division’s performance also will have to meet expectations.
The remarks are a shift from May, when UBS said it would eliminate more costs after the investment bank’s profit tumbled 67% in the first quarter. The business remains focused on constraining expenses, and while it’s always looking to add talent, net hiring is off the table, Orcel said. The company has imposed a partial hiring freeze at its wealth-management business, people with knowledge of the matter said Monday.
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