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Bank cutting 10,000 workers

UBS looking to slim down.

ZURICH — Swiss bank UBS has announced it is cutting 10,000 jobs worldwide as it slims down its investment banking activities.

The jobs will go over the next three years, and amount to 16 per cent of its current workforce of 64,000.

UBS lost 39bn Swiss francs (26 bn) during the financial crisis and had to be bailed out by the Swiss authorities.

The cuts are aimed at saving 3.4 billion Swiss francs.

UBS chief executive Sergio Ermotti said: “This decision has been a difficult one, particularly in a business such as ours that is all about its people.

“Some reductions will result from natural attrition and we will take whatever measures we can to mitigate the overall effect.”

The bank did not say where the cuts would be made. It currently employs just over 6,600 staff in the UK.

Zurich-based UBS will focus on its private bank and a smaller investment bank, ditching much of the riskier trading business which was responsible for the bulk of its losses.

In a joint letter to shareholders, chairman Axel Weber and chief executive Ermotti said: “We will no longer operate to any significant extent in businesses where risk-adjusted returns cannot meet their cost of capital.”

UBS announced its restructuring plans as it reported its results for the third quarter of the year.

The bank reported a net loss of 2.17 billion Swiss francs for the July to September period, compared with a profit of 1.02 billion Swiss francs a year earlier. (BBC)

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