AIG Private Bank To Cut Jobs In Switzerland, Sell Taiwan Arm

Rachel Walsh

2 February 2009

AIG Private Bank, now owned by Abu Dhabi-based Aabar Investments, is to cut 87 jobs in Switzerland. It also plans to sell its Taiwanese operation in the near future. The bank told WealthBriefing that the jobs are mostly back office positions and current staffing levels are not in keeping with its changed strategic focus.

“Our institutional client business abroad has been discontinued, so we will be focusing solely on private banking from now on,”said a spokesperson. “This planned focus cannot be successfully implemented with the current staffing levels".

The timescale for the cuts varies, with some effective immediately and others happening over the coming months. To ensure no hardship ensues, a social compensation plan has been put in place according to Swiss standards.

New jobs for the 87 employees will be sourced within the company where possible. The bank is also investigating outsourcing options, the spokesperson said.

The bank’s 30-strong Taiwanese operation opened in Taipei in 2007. The spokesperson could not identify any potential buyers.

Aabar Investments acquired AIG private bank in December of last year. The bank is headquartered in Zurich, with offices in Geneva, Hong Kong, Singapore, Shanghai and São Paulo and about SFr14 million ($12 million) in assets under management.