Switzerland’s UBS bank plans to shed around 3,500 jobs, including 400 in Switzerland, as it seeks to cut some SFr2 billion ($2.53 billion) from annual costs by the end of 2013.
The bank had already said it would cut jobs when it posted a lower-than-expected second-quarter profit last month. The 3,500 figure represents just over five per cent of staff.
Like rival Credit Suisse, UBS has been grappling with a soaring Swiss franc which is eating into profits. Credit Suisse has already said it would cut around 2,000 jobs after weak trading activity and the strong franc hit its second-quarter results.
UBS’s recent performance has dipped alarmingly owing to rocky economic conditions in Europe and the United States and continued uncertainty over future regulations. Net profit in the second quarter plunged by half to SFr1 billion compared with the same period last year.
According to a UBS statement on Tuesday, around 45 per cent of the job cuts will come from UBS’s Investment Bank, 35 per cent from Wealth Management & Swiss Bank, ten per cent from Global Asset Management and ten per cent from Wealth Management Americas.
“The measures announced today are designed to improve operating efficiency. UBS will continue to be vigilant in managing its cost base while remaining committed to investing in growth areas,” the statement said.
UBS expects to book a restructuring charge of some SFr500 million.