The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

TEN UBS (Bahamas) employees were laid-off yesterday, executives confirming that the Swiss banking giant was proceeding with the realignment of its business model.

The move was not much of a surprise to the financial services industry, coming weeks after the Swiss bank’s chief executive, Sergio Ermotti, revealed that up to 10,000 jobs would be cut as the firm looked to restructure its investment banking and fixed income operations. Last October, UBS (Bahamas) confirmed lay-offs of five per cent of its employees, weeks after a rogue London-based trader caused the Swiss bank to suffer a $2.3 billion loss.

It yesterday acknowledged that the bank was proceeding with the realignment of its business globally. “This includes the implementation of a new business model for UBS in the Bahamas,” the bank said in a statement.

“UBS remains committed to the Bahamas, and is confident that this renewal in strategy will result in growth opportunities for the location over the long-term.

“The implementation of its strategic plan for the Bahamas and Latin America region has consequences on the structure. Accordingly, we have taken the decision to reduce the number of employees, following a careful and thorough review of our business and overall structure.

“While painful, this decision became necessary to maintain a UBS in the Bahamas that is both strong and well prepared for the future and its challenges.” 

Minister of Financial Services, Ryan Pinder, told Tribune Business that he had met with executives of UBS (Bahamas) on Wednesday and was informed of the staff reduction, which he said was not indicative of the Bahamian financial services industtry’s current condition.

“They told me that the bank was looking to refocus and reorganise operations with the mindset to concentrate in markets such as Latin America and other areas pegged for growth,” the Minister said.

“That staff reduction resulted in staff reductions for both expatriates and Bahamians, and the anticipation was that once realigned the bank would be poised for growth. I hope that in the mood of growth they would be in the position to hire more staff than those that were let go.”

Mr Pinder added: “I was very clear that I was  disappointed in the staff reduction. However, it was a business decision to the institution in the context of making it a reformed operating structure, and I’m looking forward to working closely with UBS management to ensure that they succeed, grow and expand, and that future opportunities become available for Bahamians in the bank.

“I view this as an isolated incident. I do not view this as indicative of anything widespread in the industry. UBS has faced a number of global challenges in recent years. I do not see this as indicative of the industry as a whole. I feel quite the opposite. Based on my consultation and discussions with financial services institutions here and abroad, much of the industry is looking to expand and increase headcount due to the refocus of their business operations.”