From the Desk of Jim Eccleston at Eccleston Law LLC:

After one of the worst first quarters in the recent history of UBS, the wealth management group is now experiencing a significant downsize. How significant? UBS now has to cut nearly $300 million in costs for a chance at recovery.

The cuts mostly are taking place in the banking section. UBS now informally limits its executives to hiring only one back-office person for every five who are leaving the firm. The new hires for client-facing bankers are in better luck; managers have been instructed that they can hire one banker for every two bankers leaving.

The downsizing is not entirely new for UBS; the bank has been changing hiring practices over the last decade in a shift towards private banking. What is new is that hiring practices are now being primarily used to make up for large first quarter losses.

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