UBS AG is currently in the midst of a restructuring plan. One of its most recent moves was the reduction of its labor force by 10,000 jobs. Now, it is moving out of its rented location at Manhattan's 299 Park Ave in a clear move to reduce overhead costs.
The bank had previously listed the offices in Midtown for sublease that would be available by mid-2014. This was confirmed by Robert Alexander, the New York tri-state regional chairman of CB RIchard Ellis Group Inc, who represents UBS. Only three fourths of the office location would be given up and the bank intends to keep five floors until the lease ends in 2018. The transaction was confirmed by two confidential sources.
According to Alexander, the company had 'excess capacity, like all financial firms right now.' He added, "UBS is being extremely proactive in managing its bottom line. That's why they're doing this."
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