http://cptv.vo.llnwd.net/o2/ypmwebcontent/Chion/hj%20110824%20ubs%20FOR%20BIZ.mp3
Swiss bank UBS will retain a significant presence in Stamford after the state of Connecticut extended the company a $20 million loan. But, as WNPR’s Harriet Jones reports job cuts seem likely at the bank’s Connecticut operations.
All summer the city of Stamford has been buzzing about the intentions of its largest employer which made no secret that it was shopping for real estate in Manhattan. Now UBS says it will commit to retaining at least two thousand employees in Connecticut for the next five years. That’s two thirds of its current workforce in Stamford. The bank has also announced it will cut 35 hundred jobs across its global workforce. Philip Lofts is CEO of the bank’s American operations.
“UBS will continue to maintain our flagship trading floor and substantial operations across Connecticut. Throughout our deliberations the Governor has consistently emphasized the significant role that UBS plays here in the state of Connecticut.”
Governor Dannel Malloy, a former mayor of Stamford, was on hand to announce a $20 million interest-free loan from the state. The company has said it will spend the cash on infrastructure projects in Connecticut. Malloy says it’s money well spent to retain UBS employees in the city.
“But for them we know that revenues to the state government would decline precipitously. These are after all high-paying jobs of well-educated individuals, firmly committed to the welfare of the company for which they work. So we are particularly proud to enter into this new partnership with UBS.”
The announcement brought a sense of relief in Stamford. City residents Braulio Pinho and Wai Leung welcomed the news.
“I think it’s great, because people need jobs and if the bank leaves, we’re going to lose at the jobs.”
“Governor Malloy saved the jobs therefore again, the economy here will be a lot better. The market, at least the real estate market will not be hurt that badly.”
Another Stamford resident, Addison Cheng said the ripple effect on other big corporate names in the city could be positive.
“Also the impact on RBS. RBS is just across the street. It could be a contagious decision. So I applaud Governor Malloy in his ability to persuade UBS to stay put.”
UBS has not yet detailed how quickly job cuts in Stamford will be implemented, or which sites will see the most losses.
For WNPR, I'm Harriet Jones.
Additional reporting on this story by Uma Ramiah.