UBS AG (USA)(NYSE:UBS) has decided to wind down its fixed income business and will slash 10,000 jobs related to that business. The Zurich based bank will henceforth focus on its private bank and investment bank.
This move with Chief Executive Officer Sergio Ermotti at the helm, is likely to take three years, and is expected to save 3.4 billion Swiss francs or $3.63 billion.
According to Chairman Axel Weber and Ermotti, "The net impact of all these changes will be transformational for the firm." Their letter to the shareholders also says, "Our overall earnings should be less volatile, more consistent and of higher quality."
Staff strength which is currently 63,745 will be reduced to 54,000 after this move, lower by 15 percent.
In anticipation of this announcement, UBS shares climbed 7.3 percent Monday and are likely to open 0.9 percent up.
In the third quarter, when analysts had expected a loss of 457 million francs, UBS had posted a net loss of 2.172 billion francs because of restructuring and debt charges.
According to sources acquainted with the matter, Scott Forstall, head of Apple Inc. (NASDAQ:AAPL)) iOS has been asked to leave, as he has refused to sign a letter apologizing for incomplete features and below par performance of iOS 6’s new Maps app.
There are reportedly tensions prevailing among members of Apple staff and Forstall, with the former seeing the latter as confrontational and uncooperative. The refusal to sign the apology letter seems to have been the last straw.
Earlier, John Browett, retail executive at Apple, had apparently been asked to leave as he failed to adjust to the corporate culture at Apple.
Forstall will continue as adviser. The Siri and Maps teams will work under senior vice president Eddy Cue, while Jony Ive will head the interface team.