UBS (which was formed by the merger of Union Bank of Switzerland and Swiss Bank Corporation) just announced that they will lay off 8,700 employees which is about 12% of their workforce. This is significant here because they have a large presence in the US as well as more locally in Utah.
Apparently these cuts are necessary because there are many customers pulling their deposits out of the bank due to its new policy to cooperate more closely with foreign nations to help prevent tax evasion. The management at UBS has determined in the wake of the falling deposits and large losses in subprime mortgages it is time to adapt its size to lower levels.
This kind of adaptation is necessary in times like this, however it is still a little disconcerting to see cuts this large still hitting. The road to economic recovery will rely largely on the creation of jobs. If employment keeps being cut like this it will be very difficult to start any kind of resurgence of economic activity.
Subscribe to:
Post Comments (Atom)
3 comments:
That makes me nervous.
With news like this all over the place, I'm thankful every day that Bruce still has a job. Here's to hoping it all starts to turn around soon!
We're definitely crossing our fingers that there will be enough assistantships to go around this coming school year!
Post a Comment