UBS said this week it will cut risk-weighted assets by around $107bn by the end of 2017, eliminate about 10,000 jobs across the bank and reorganize its investment bank to deliver more products and services to ultra-wealthy clients.
Bilanz reports, however, that cuts in headcount and capital may go deeper than the firm said, quoting a company insider.
Once the restructuring of the investment bank is completed, it may use only 20% of capital, rather than the 30% the bank said it's targeting, Bilanz said.
In the meantime, Reuters reports that at least 2,000 UBS employees in the state of Connecticut will survive.
UBS has a massive trading floor in Stamford, Conn., and several fixed-income employees were said to have been fired by phone this week because the devastating storm Sandy that hit the region on Monday prevented them from traveling to their offices.
Still, UBS and Connecticut officials said that the bank will carefully work to ensure that a sizeable staff remains working in that state east of New York.
At stake is a $20m interest-free development loan that UBS got from the state in May (although $20m in the scheme of things seems pretty small change). The bank signed a contract committing to keeping at least 2,000 people employed there, and the state has agreed to forgive the loan after five years if all terms of the contract are met.
'I have been assured that the layoffs will be structured in such a way that UBS will be able to meet the obligations it has under the agreement', Catherine Smith, commissioner of Connecticut's Department of Economic and Community Development told Reuters. 'We feel relatively comfortable about it'.