UBS Cuts Banker Perks, Cites AI Efficiency
UBS is set to become the first major bank to phase out meal stipends for its bankers. The bank attributes the change to new AI productivity tools that allow employees to complete their work faster and leave the office earlier, reducing the need for late-night meal coverage.
The move to eliminate meal stipends is part of a much larger cost-saving initiative at UBS, which aims to cut $13 billion in gross costs by the end of 2026, following its acquisition of Credit Suisse. The bank has already achieved $9.1 billion of these savings and is on track to reduce its workforce from a post-takeover high of nearly 120,000. Late-night meals are a long-standing perk in an industry notorious for grueling hours. Junior investment banking analysts often work 80-100 hours per week, with workdays frequently ending after midnight. A 2025 survey found that junior bankers at large firms reported working an average of 81 hours per week, a slight increase from 2022. UBS has been actively developing and deploying AI tools aimed at increasing productivity. The bank created an M&A "co-pilot" capable of analyzing a database of over 300,000 companies in under 30 seconds to generate deal ideas. Additionally, it has rolled out an internal AI assistant known as "UBS Red" to 30,000 employees in Asia and Europe to streamline access to the bank's knowledge base. The bank's AI strategy is a key priority, with the appointment of a new Chief AI Officer, Daniele Magazzeni from JP Morgan, effective January 2026. UBS has over 300 active AI use cases and is rolling out tools like Microsoft 365 Copilot to all employees to further enhance efficiency and productivity. However, reports on the demise of the meal stipend may be premature. Some sources within the financial news community have refuted the claim, stating that UBS will continue to provide meal allowances for employees working late. The value of the perk was last reported to be around $30 per meal.
