Less than a month as UBS’s interim chief, Sergio Ermotti is planning to slash the size of the investment banking division following the rogue trading scandal that cost the embattled Swiss bank $2.3 billion, the WSJ reported.
This news shouldn’t come as a surprise.
Upon taking the helm, Ermotti was seen as being the one tasked with reducing the investment banking business so the beleaguered Swiss bank could return its focus to wealth management.
So what will the carnage be?
According to Bloomberg, analysts expect UBS to shed an additional 1,700 positions in the investment bank as the firm looks to pare back its fixed-income business.
Prior to the massive rogue trading loss, the bank announced plans to shed 3,500 jobs as part of broader cost-cutting measures. Nearly half of those cuts were supposed to come from the investment banking business.
Earlier: “The UBS investment bank is F#$%&d”