UBS to restructure its business, 500 jobs at risk

In an internal memo, Swiss multinational, UBS has laid out its plan to divide private banking operations in Europe, the Middle East and Africa (EMEA) into three parts. The leaders at the financial services company believe that this division would speed up the decision making process and empower the regional units.

While the restructuring would streamline the processes, on the downside it will also have a negative impact on jobs.

As per report, about 500 jobs will be lost in the overhaul, equivalent to 2 per cent of the wealth-management’s global workforce.

This restructuring is said to be part of an overarching redesign of the wealth management business instigated by Iqbal Khan, who joined the company in October 2019 fom Swiss rival Credit Suisse.

“To deliver on these opportunities we are pleased to announce that we will accelerate decision-making and time to market by delayering, reducing organizational duplication, and increasing business unit (BU) autonomy, which comes with more accountability,” mentioned Khan and Tom Naratil  in the memo.

As part of the overhaul, Current EMEA head Christine Novakovic will continue to lead the European business, while Caroline Kuhnert will head up CEE and Ali Janoudi will take control of the MEA region.

The memo also pointed towards UBS's plans to integrate its chief investment office (CIO), mandates, investment content and wealth planning operations, with Mark Haefele appointed to lead the integrated unit and Bruno Marxer heading the Global Mandates, Investment Content and Wealth Planning divisions.

How far does this division of operations benefit the Swiss multinational would be interesting to follow. Meanwhile, more interventions are expected to follow in the company as Khan continues to lead transformation at UBS. 

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