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UBS
Americas, headquartered in New York and New Jersey, will cut
down on hiring new client advisers by 40 percent and reduce the
overall number to between 6,500 and 7,000 from around 7,145.
This is part of a broader restructure by Tom Naratil, who took
over as Americas head at the start of 2016 after around five
years as UBS's group chief financial officer.
UBS Americas' ranks have swelled by poaching bankers from Credit
Suisse, its Swiss rival that had shuttered its U.S. private
banking business on grounds that it was too small to compete.
Under the plans, UBS Americas will also strip out a regional
layer of its structure.
It is tweaking its compensation plan to reward bankers who
manage more assets and promote team building, as well as to
encourage advisers leaving the business to transfer their
practice to another UBS adviser.
Part of the reasoning is to reduce volatility in hiring and
retaining client advisers.
Many private banks are looking to boost profitability by cutting
costs, a response to tough financial markets and record-low
interest rates which have been a drag on revenues.
UBS's wealth management business outside the Americas, headed by
Juerg Zeltner, aims to cut costs by hundreds of millions of
dollars, according to a memo seen by Reuters last month.
(Reporting by Joshua Franklin and Angelika Gruber; Editing by
Ruth Pitchford)
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