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UBS trims Asian wealth jobs post Credit Suisse acquisition amid economic slowdown

UBS Group is downsizing its Asian wealth workforce following its acquisition of Credit Suisse, citing subdued client activity and China’s economic slowdown.

This includes eliminating roles primarily in Hong Kong and Singapore, with exact cut figures yet to be determined, while retaining private bankers in Australia and India.

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SWITZERLAND: UBS Group is trimming hundreds of wealth-related positions across Asia, a short while after finalizing its acquisition of Credit Suisse, according to a report from Bloomberg.

This move comes shortly after UBS completed its acquisition of Credit Suisse, and it is in response to subdued client activity and the slowing economy in China.

Switzerland’s largest bank has already reduced some redundant positions in recent months, and additional workforce reductions are anticipated to continue until November.

This information comes from individuals familiar with the matter, who wish to remain anonymous due to the confidential nature of the plans.

The lender is set to eliminate a few hundred roles that include relationship managers in Hong Kong and Singapore, the majority within teams newly acquired from Credit Suisse, the people said.

The number of cuts has not been finalised, they said.

The lender plans to keep the majority of private bankers in Australia and India for now, one of the people said.

UBS is battling muted client sentiment and activity levels in Asia-Pacific, where the regional business hub of Hong Kong has long been a booking centre along with Singapore for China’s ultra-wealthy.

The wealth management unit’s profit before tax in the region fell by 9% in the second quarter from a year earlier.

The world’s second-largest economy expanded by 3% last year, one of its slowest rates of growth in decades as pandemic controls and a property crisis battered the country.

Its eventual reopening provided hope China would bounce back this year, but that recovery has lost ground and the benchmark stock index is on track for a third straight year of losses.

Since closing the takeover of Credit Suisse in June, UBS has outlined major targets for the integration of its former rival including 3,000 domestic job cuts and more than US$10 billion in cost savings.

That’s likely to be a fraction of the roles to disappear globally.

The reductions come as other banks such as Barclays Plc and Goldman Sachs Group Inc. also trim headcount.

Barclays plans to dismiss about 5% of client-facing staff in the trading division as well as some dealmakers globally as part of the cuts.

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Asia

Up to 200 athletes tested for doping so far at Asian Games

Between 150 and 200 Asian Games athletes tested for doping, yielding no positive results. Anti-doping efforts emphasized for a clean event, focusing on record-breakers.

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HANGZHOU, CHINA — Between 150 and 200 Asian Games athletes have already been tested for doping, the Olympic Council of Asia said on Monday, with no positive results so far.

Speaking at an anti-doping press conference on the second full day of the Games in the Chinese city of Hangzhou, the OCA said dope-testing was “gaining momentum” at the event.

Mani Jegathesan, an adviser to the OCA anti-doping committee, warned that drug cheats would be rooted out.

Up to 200 athletes have been tested so far, he said, but any positive results will take several days to come through.

“Every athlete participating in these Games must understand that they could be picked at any time,” Jegathesan warned.

“That is the best step to ensuring we have a clean event.”

There are about 12,000 athletes at the 19th Asian Games, more competitors than the Olympics, and Jegathesan admitted it would be impossible to test them all.

Instead, they will prioritise, including picking out those who break world or Asian records.

— AFP

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Foodpanda’s restructuring amid sale speculations

Food delivery giant Foodpanda, a subsidiary of Delivery Hero, announces staff layoffs in the Asia-Pacific region, aiming for increased efficiency. This move coincides with ongoing talks about potentially selling parts of its 11-year-old business.

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Foodpanda, a subsidiary of Delivery Hero, is initiating undisclosed staff reductions in the Asia-Pacific region, as discussions continue regarding the potential sale of a portion of its 11-year-old food delivery business.

In a memorandum circulated to employees on 21 September, Foodpanda CEO Jakob Angele conveyed the company’s intent to become more streamlined, efficient, and agile.

Although the exact number of affected employees was not disclosed, the emphasis was on enhancing operational efficiency for the future.

No mention was made in the memo regarding the reports of Foodpanda’s potential sale in Singapore and six other Southeast Asian markets, possibly to Grab or other interested buyers.

Foodpanda had previously conducted staff layoffs in February and September 2022. These actions come as the company faces mounting pressure to achieve profitability, particularly in challenging economic conditions.

The regulatory filings of Foodpanda’s Singapore entity for the fiscal year 2022, ending on 31 Dec, indicated a loss of S$42.7 million despite generating revenue of S$256.7 million.

Angele further explained that Foodpanda intends to review its organizational structure, including both regional and country teams, with some reporting lines being reassigned to different leaders. Additionally, certain functions will be consolidated into regional teams.

Expressing regret over the challenging decisions, Angele assured affected employees of a severance package, paid gardening leave, and extended medical insurance coverage where feasible.

Foodpanda will also forego the usual waiting period for long-term incentive plan grants, and vesting will continue until the last employment date. Employees will retain all vested shares as of their last day of employment.

Foodpanda, established in 2012 and headquartered in Singapore, became a part of Delivery Hero in 2016. The company operates in 11 markets across the Asia-Pacific region, excluding its exit from the Japanese market last year.

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