As next Tuesday's UBS 3Q results draw ever closer, further details about the cost cutting which has been causing internal ructions at the Swiss bank are emerging.
The Wall Street Journal says that today UBS will be cutting 400 people across North America, Europe and Asia. The cuts will be spread across fixed-income trading, equity trading and corporate finance. The Financial Times says UBS is exiting capital intensive areas of fixed income like long-end flow rates and global correlation trades (both moves announced a long time ago) and that it's centralising IT. The full plan may not be ready in time for being announced next Tuesday, the FT warns. Ultimately, the redundancies may run into, "many thousands."
While redundancies will be dispersed across UBS's investment bank, the Wall Street Journal warns that corporate financiers within the domain of Andrea Orcel - the ex- BAML banker who joined UBS in July, will be particularly targeted for the chop. As we've reported before, Orcel is engaged in upgrading. He's getting rid of UBS's long-established investment bankers and replacing them with some choice hires of his own. The Wall Street Journal suggests that this will continue. UBS's job cuts are partly to cut costs, but an insider told the WSJ that they are also intended to: "cull the worst performers from the investment bank's ranks and create room for it to hire more-promising talent."
Meanwhile, Ernst & Young is doing some big hiring
If you have the misfortune to be culled from UBS, you could always try E&Y. As we reported a few weeks' ago, Ernst & Young is hiring 10,000 people in the US. Shirley Jackson, its director of recruiting for Europe, the Middle East, India and Africa (EMEIA), says it will be hiring closer to 20,000 next year in the region.
You can read our full interview with Shirley here.
The bad news is 10,500 of these EMEIA hires are going to be graduates (there will be another 5,000 interns). However, a further 10,000 are expected to be hired across all business areas at an experienced level. The other potentially bad news if you're an ex-UBS corporate financier based in London is that E&Y's recruitment will be particularly focused on Germany, Africa and Turkey next year.
Nevertheless, E&Y is open to hiring from investment banks and Jackson says they're benefiting from a net inflow of bankers. As we reported last week, Deloitte is also hiring corporate financiers in Europe. Failing that, Baird still seems to be hiring selectively for its corporate finance team.