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UBS Said to Widen Job Cuts to 400 at Investment Bank

UBS AG (UBSN) is preparing another round of job cuts across its investment bank in Europe as Chief Executive Officer Sergio Ermotti tries to overhaul the firm, two people with knowledge of the matter said.

UBS is considering cuts in equities and fixed income as it trims its merger advisory staff, bringing total reductions to about 400, or 10 percent of the unit’s front-office employees in the region, said the people, who asked not to be identified because the review is private. The cuts are part of plans to pare back headcount globally, said one of the people.

Ermotti, 52, said in a memo to staff last week he will take “all actions necessary to tackle the current challenging market environment and paradigm shift” in banking and will continue “remodelling” UBS. The Zurich-based firm, which said last year it would trim about 1,600 jobs at the unit, has already reached the staffing goal it set for the end of 2013 as the bank shrinks its securities business to concentrate on wealth management.

Chicago : Navistar to lay off 200 workers

Navistar International Corp. said today that it expects 200 employees to participate in the company's voluntary separation plan this quarter, on top of the 500 who did so in the third quarter.

The Lisle, Illinois-based truck and engine maker also said it may sell "non-core businesses" as it reported a paltry third-quarter profit that nevertheless beat expectations. Navistar's shares rose 17.4 percent to close at $23.97.

Navistar, operating under an interim CEO installed last week, earned $84 million, or $1.22 per share, for the three months ended July 31. That was off more than 90 percent from the year-earlier's $1.4 billion, or $18.24 per share, which included a $1.48 billion tax benefit. Revenue dropped 6 percent, to $3.3 billion, but exceeded Wall Street forecasts by 10 percent.

Navistar is expected to lose $300 million for the fiscal year ending in October, compared with a $1.8-billion tax-advantaged profit the previous fiscal year. Revenue is expected to slip nine percent, to $12.7 billion.

"Clearly we are not pleased with these results," interim CEO Lewis Campbell said in a statement. "I believe we can accelerate the pace of progress to deliver significant improvements during the next 12 to 18 months."
The former Textron Inc. CEO succeeded Dan Ustian, who resigned under pressure after 37 years with the company.

Fiscal 2013 earnings are projected at $102 million on revenue of $13.9 billion.
The company is also boosting efforts to lower discretionary spending and lower its material costs further.
During an earnings call today, Mr. Campbell said that Navistar would focus on North American truck, engine and parts operations, where quality, cost and consumer satisfaction are priorities. “Quite simply, we need to step up the pace and address our problems as quickly as we can,” he said.

Another worrisome target: Navistar's $3.2 billion in unfunded pension and health care liabilities.
“I think we have a plan to possibly address that in a different way,” he said, without offering specifics. “It's not something we're kind of looking the other way and pretending it's not there.” He also said, "We got a really good handle on cash."

Although Mr. Campbell, 66, has an interim title, Navistar hasn't outlined search plans for a more-permanent CEO. He said he and his wife reached an agreement over the weekend to buy a house in the area.

“So as they say in poker, 'I'm all in.'” He added: "I did plenty of due diligence, and while there are a host of issues that need to be resolved, there was nothing I felt was insurmountable when deciding whether or not to pursue this opportunity.”
He told analysts he has not spoken with large shareholders.

Chicago: Trading firm Getco cuts 40 workers

Getco LLC, one of Chicago's largest trading firms, last week cut about 40 employees globally, including at least one top manager, as the firm realigns its focus and operations under a new CEO, according to sources familiar with the reduction.

Among those cut was managing director Edward Boyle, 49, who was based in Chicago and had business development duties across the firm, the sources said. He had joined Getco in late 2010 from NYSE Euronext, where he had overseen that exchange company's options business.

His departure follows the exit of several other senior managers in the past year, including David Babulak, who was also a managing director; Michael Rauchman, who was the company's chief technology officer; Brian Nigito, who was a top manger in New York; and Patrick Tray, who was a trading manager for the firm in Chicago.

A Getco spokeswoman declined to comment.

Getco, a top electronic market-maker at the New York Stock Exchange that is active in 50 markets around the world, is restructuring the firm and its focus in the wake of promoting Daniel Coleman as CEO in February.

Mr. Coleman, who was previously the company's global head of equities and client services, stepped up as the company's Chicago co-founders, Stephen Schuler and Dan Tierney, stepped back. The company has said previously that it has about 400 employees.

While Mr. Schuler and Mr. Tierney still own part of the company, they started answering to an outside investor in the firm when Greenwich, Connecticut-based General Atlantic took a minority stake in 2007.

Getco is not only a market maker on the exchanges, it also own stakes in several electronic ones, including the Chicago-based Eris Exchange, Bats Exchange and NYSE Liffe U.S.

Getco was founded in 1999 and has 400 employees.