UBS has thousands of I-AGs and contractors

How many jobs is being cut by UBS-CS? This question has been on analysts’ minds since CEO Sergio Ermotti talked about just 3,000 jobs four months ago.

There will likely be another zero. This has now been made clear through a paragraph in the bank’s latest overseas disclosure.

UBS writes about an additional $700 million write-down on agreed services from subcontractors.

Ermotti and his colleagues in managing the group want to reduce these matters or not receive them at all.

“Onerous contracts” is the technical term, “outdated contracts.”

The report indicates that once it becomes clear that these amounts will be reduced, it will be possible to make appropriate arrangements.

At least under International Financial Reporting Standards (IFRS), which UBS uses, while CS reports under US Generally Accepted Accounting Principles (US GAAP).

Because the Swiss financial giant now reports everything according to International Financial Reporting Standards, contracts with suppliers appear to be a copycat.

That is more than the $700 million mentioned above.

The corresponding expenses in the income statement were recorded under “general and administrative expenses,” the bank told the US Securities and Exchange Commission.

The total only refers to 2022, i.e. retrospectively.

It remains to be seen how much there will be for the current 2023 year.

Behind that are people who were full-time employees of UBS and CS, but who did not appear on the big bank’s payroll as internal employees.

Precisely because they appeared as outsiders.

If we take an average cost of 250,000 francs per man or woman, 700 million transcribers represent about 3,000 jobs or employees.

Not surprisingly, thousands are concerned. CS employs 11,000 IT professionals in India alone.

Shortly before its demise, CS’s entire IT department had approximately 29,000 “cracks”, a large percentage of whom were working as outside employees. Their fate is now open.