Successful recruiting in the United States has not generated enough revenue to keep UBS from announcing significant layoffs worldwide.
The Swiss bank says its 6,800 U.S. brokers are immune to the layoffs. Given the amount of work UBS did to win and retain those brokers from rival wirehouses, it makes a certain sense that they won't be cut loose just to meet corporate goals.
However, roughly 10% of the 3,500 jobs the bank is eliminating will come from U.S. Wealth Management, which basically means home office and other support staff.
Bob McCann promises his reps that "these reductions will occur mainly in the investment bank and Swiss bank, and they will have little to no direct effect on you, our advisors."
The investment bankers down in New York City and the bankers and reps in Switzerland will not fare so well. UBS has allocated about 1,575 investment bank jobs and another 1,225 people in the Swiss operation to cut.
One thing's for sure: The UBS headquarters in Stamford, Connecticut, is not going anywhere. While the U.S. unit is shedding 350 jobs total, they will not force the closure of the Stamford offices.
If anything, some New York staff may be merged into the Stamford operation.
Bank of America Merrill Lynch and Credit Suisse have also announced layoffs, but as yet details are vague.