The planned merger between the Swiss Bank Corporation (SBC) and
Union Bank of Switzerland (UBS) is likely to result in the scrapping of
the communications department at UBS’ London-based investment banking
business.
Ten top PR people, including Alan Ogden, director of European corporate
communications at UBS, face the prospect of redundancy. Ogden joined UBS
from Hill and Knowlton in February. He is also responsible for an
internet development team and press enquiries team.
A source close to UBS said: ’There’s a total duplication with SBC’s
communications staff. The communications department looks set to be
disbanded.’
SBC doesn’t operate a regional communications structure: its global
communications is centralised in Switzerland. SBC has the upper hand in
the merger which is also likely to result in disbanding UBS’ US and Far
East communications departments.
UBS’ investment banking business effectively faces the axe. The
restructuring of the two banks into the United Bank of Switzerland is
likely to result in it being rolled into SBC under the name Warburg
Dillon Read.
A total of 13,000 jobs are likely to go as a result of the SBC and UBS
merger. The new bank will be the second largest in the world and the
world’s largest asset manager with pounds 598.8 billion under
management.
Meanwhile, City experts are predicting further fall-out for in-house PR
departments in other banks, with the prospect of further mergers in the
months ahead.
