Wednesday 31 October 2012 9:40 pm

UBS set to cut back on senior management

SENIOR managers are expected to bear the brunt of job cuts at UBS, industry insiders believe. And the poor recruitment market means many of the 10,000 who will lose their jobs in the next two years are unlikely to get new roles easily. The cuts were announced on Tuesday and 100 London staff were immediately put on “special leave.” Among the most senior employees to be affected was Richard Luddington, vice-chairman of global capital markets. The cuts are part of the bank’s shift away from fixed income work and into wealth management. But a recruiter with knowledge of the bank said it also represents a good chance to reduce the number of expensive senior managers. “UBS has long been pretty top-heavy, and we expect to see a fair number of senior and mid-level managers lose out,” the recruiter told City A.M. Another said they have seen little interest in the departing staff. “In the past some firms would put their hands up at this point to look at the staff, letting them move quite easily,” said Mark Cameron of Astbury Marsden. “That is not taking place now. A few small firms are interested, but they are not hiring enough to dent these losses.”