The Big Layoff: Struggling Financial Giant Fires Thousands of Employees
- Posted on August 30, 2011 at 4:00pm by
Becket Adams
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Last Tuesday, August 23, the Union Bank of Switzerland (UBS) announced that it would be firing thousands of its employees.
Although having already eliminated 5,000 jobs earlier this year, the Swiss global financial services company released a statement saying that it plans to terminate another 3,500 jobs in order to save $2.75 billion. The firm has seen profits steadily decline due to the euro zone crisis, government regulations and the rise of the Swiss franc.
Headquartered in Basel and Zürich, Switzerland, UBS specializes in providing investment banking, asset management, and wealth management services for private, corporate and institutional clients worldwide.
The UBS operates in more than 40 countries, has a strong presence in all major financial centers, occupies offices in over 50 countries, and–for now–employs more than 64,000 people. It is therefore considered the world’s second largest manager of private wealth assets and maintains over $2.68 trillion in assets.
It is precisely because of this far-reaching influence (and current asset balance) that the rise in layoffs should be the cause for some consternation.
According to Business Insider, “The layoffs are unfortunately necessary as Euro banks are struggling to cope with an increased regulatory environment, the crisis in the Eurozone, and dwindling investment bank profits.” But it is not just the UBS that is struggling.
This month alone, UBS, Barclays, Credit Suisse, RBS, and HSBC have all announced layoffs numbering in the thousands. In fact, the number of employees that have been “let go” this year has surpassed 40,000:
HSBC - 30,000 job cuts Barclays - 3,000 job cuts
UBS: 3,500 job cuts, mainly from its investment bank (where there is the least amount of investor confidence)
Royal Bank of Scotland - 2,000 job cuts
Credit Suisse - 2,000 job cuts
Carsten Kengeter, the head of UBS Investment Banking division, sent out a memo earlier this week saying that “this would be tough and that everyone should stay focused,” according to Business Insider.
This is all slightly alarming because it signals that the UBS, an organization that controls and influences a very large portion of the world’s financial stability, is struggling to produce favorable results in the form of a profit.
Furthermore (and more dangerous than alarming), the woes of the UBS could be the thing that emboldens Christine Lagarde, the chief of the IMF, and her coterie of Keynesian-minded associates to take drastic and potentially catastrophic steps towards a supposed “alleviation” of the pressures felt by European financial institutions.
We pray it does not come to that.
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Gypsy123
Posted on September 7, 2011 at 2:40pmPray why are they using that word they don’t pray.
Report Post »packsack54
Posted on August 31, 2011 at 3:08pmIs that the same bank that tried to screw over all the Jews from Germany that had accounts prior to WWII. And their family could not get the money after the war. Few years ago a employee save a bunch of record from be destroyed to cover it up their action, the account numbers. What ever happen to this incident. Were they part of the hidden foreign American accounts. The rich hidden not to pay taxes? Please let me know.
Report Post »sjohn70037
Posted on August 31, 2011 at 10:07amI have some investments with UBS. This couldn’t happen to a more deserving bunch of people. I love karma.
Report Post »DanWesson455
Posted on August 31, 2011 at 9:20amOOOPS! Did I do that? Oh Well. I goofed but you pay the piper.
Report Post »TomFerrari
Posted on August 31, 2011 at 8:41amPeople need MORE say in government, not less.
Less say in government = more corruption in government.
(HISTORY IS MY PROOF)
So, we need to return the power to the people from whence it originates (States Rights to start);
NOT be marching toward a global government where the U.S. becomes the slave of the rest of the world as its primary source of wealth.
May God open the eyes of the foolish!
Report Post ».
,
.
simply one voice
Posted on August 31, 2011 at 2:33amUBS laying off 1000′s? Get the head of the International Monetary Fund (IMF), Christine Lagarde to force American taxpayers to bail them out. What a sick joke.
Report Post »Fina Biscotti
Posted on August 31, 2011 at 1:20amObama’s regulations police have been going after LEMONADE STANDS – around the country – and are starting to go after VENDORS at Second-Line parades in New Orleans.
Report Post »Zombee
Posted on August 31, 2011 at 1:12amThe problem with redistribution is, the more the “takers” take the less the “makers” want to make. And the whole system falls apart.
Report Post »Cat
Posted on August 31, 2011 at 6:30amAccording to Cloward & Piven, that’s the plan.
Report Post »Orchestrate crises, increase regulation, collapse the system.
Afterward, rebuild a global government.
After all, people can’t possibly do anything for themselves, now can they.
LibertyMama
Posted on August 30, 2011 at 11:56pmIts a little ambiguous, but If they are saying that firing 3500 employees will save $2.75B – that would mean that each of those employees is currently costing the company $785,714.29 in salary, benefits, etc. Even if they mean that all the firings together (8500) would save the company $2.75B – that would mean that each employees costs the company $323,529.41.
Sounds a little far-fetched to me… but what do I know?
Report Post »tckid17
Posted on August 30, 2011 at 11:53pmMaybe I go to a Russian bank where they offer free Czeching.
Report Post »survivorseed
Posted on August 30, 2011 at 11:02pmThey have to fire those 3500 people in order to raise profits and garner their share of the 4.5 billion dollars put aside for executive bonuses. C’mon people, this is capatalism at its finest, you know, trickle down economics. You can’t expect the man to take a pay cut, that would be socialism. I mean, you and I both know how hard it is to make ends meet when your wage drops from 13 million down to a measley 9 million a year.
Report Post »DUMBASPELOSI
Posted on August 30, 2011 at 11:59pmYou wouldn’t know true capitalism if your ignorance depended on it.
Did you happen to see the passage about increased regulation. I‘ll be you’d like to regulate layoffs as illegal . . . fantasy is the world you love.
Herman Cain for President
Report Post »survivorseed
Posted on August 31, 2011 at 8:15pmWell their not going to say “we need to make these layoffs so we can keep getting our extraordinary bonuses” are they.
Report Post »I have a hard time believing that you would actually stand up for banks considering their role in the financial crisis and the fact that they were generously compensated for that role even though you and I had to sacrafice to make ends meet.
What does the tea party actually stand for? You guys flip flop all over the place to suit your agenda of general outrage at anything that happens in the world while Obama is president
lonewolf57
Posted on August 30, 2011 at 10:48pmThanks so much ProbIemSoIver.You are 1.
Report Post »Gypsy123
Posted on August 30, 2011 at 9:29pmFinancial earth quakes rockin the world.
Report Post »BellaMia7
Posted on August 30, 2011 at 9:23pmI heard that something like 60 trillion dollars is going to be subtracted from the world economy.
Report Post »Ookspay
Posted on August 30, 2011 at 8:04pmBank of America laying off ten thousand and now UBS. This is a tremor folks, the economy is worse then the MSM or any one else will tell you. Another big one is coming, hang on. Big coroporations know this and have been squirreling away cash to try and ride this out, so should you.
Report Post »Chuck Stein
Posted on August 31, 2011 at 1:24amJob losses in the financial sector are going to be widespread.
Report Post »ProbIemSoIver
Posted on August 30, 2011 at 7:30pmWelcome to the real world, clowns. Here, we produce things with our hands that actually benefit society.
Report Post »lonewolf57
Posted on August 30, 2011 at 8:00pmAnd we don’t sit around all day waiting for what a CONGLOMERATE decides to do.We live freely and PRODUCE.Daily.
Report Post »Manipulating currency is the last thing on our minds.
nptden
Posted on August 30, 2011 at 8:11pmWE PRODUCE? What. We got a Commie president who wants to give away billions in education grants and to give away college education to blacks and minorities who can’t even read. To go into a market that doesn’t even exist. Give them brooms and shovels. And a job on the highway. And if they don’t show up, no welfare or unemployment benefits. No freebie, cell phones or computes, just shovels and brooms.
Report Post »loriann12
Posted on August 30, 2011 at 8:20pmThat’s a nice thought, but takers will always find a way to game the system. They’ve been slaves to it too long, and I don’t mean color, but economic status.
Report Post »ProbIemSoIver
Posted on August 30, 2011 at 8:35pmNPTDEN. Produce what? let me tell you! I am a Graphic artist that Hand Paints Murals and Signs. Main street U.S.A. needs Signs. I also have a machine that produces Computer-generated vinyl lettering and graphics. Therefor I Manufacture a product here in the U.S.A. for the U.S.A. I also drive a cab part-time and provide a service to the people. I get intoxicated people home, thus maybe saving a life or two. I assist elderly people to the doctor’s office or grocery store and help them get the groceries to their kitchens sometimes when they are really in need. I am nearly homeless, getting by week-to-week. I TAKE NOTHING from the government !!! I am not some overpaid Jack@ss gambling with another person’s money under the guise of “I am an Investor”. “Not a degenerate gambler”. lol. yeah.
Report Post »STOCK MARKET is GAMBLING !!!
I respect People that invest in MAIN STREET U.S.A.
Not invest in the Military / Industrial Complex’s Companies that are destroying us.
You are financing America’s Enemy !!!!