Post date: Aug 23, 2011 3:45:26 PM
Swiss bank UBS plans to slash around 3,500 jobs, almost half of them from its investment bank, as it seeks to shave some 2 billion Swiss francs from annual costs by the end of 2013.
SWITZERLAND-UBS - Switzerland's biggest bank is to axe 3,500 jobs - almost 5 percent of its workforce - as part of a cost savings programme.
UBS said the measures will help to make annual savings of $2.5 billion dollars.
Almost half the cuts will come from its investment banking business which has struggled with rising regulatory costs and a red hot swiss franc.
UBS has also been left with higher wage costs after compensating its bankers when tougher bonus rules came into effect.
The bank had to be rescued by the state in 2008 after massive losses on toxic assets.
After slashing staff from 78,000 before the financial crisis to around 64,000, staffing levels grew again in the last year to more than 65,000.
One analyst called these new cuts an admission of defeat. However the bank is not alone in preparing for leaner times.
Recently the Royal Bank of Scotland announced it would shed 2,000 jobs, Lloyds axed 15,000 and HSBC cut 10 percent of its workforce.
Investment banks worldwide have been hit by slow trading made worse by the debt crisis in Europe and America.
Hayley Platt, Reuters.