UBS to lift the axe
(20 April 2009 – Global) Swiss bank, UBS, has become the next bank to announce worldwide job cuts, although Australia is expected to be safe.
UBS said that it would axe 8,700 jobs around the world in a bid to cut costs after posting a loss of around two billion Swiss francs (A$2.42 billion) for the first quarter.
The loss comes at a time when a number of banks, including Goldman Sachs and JPMorgan, are beginning to turn around and into profit.
The bank intends to reduce costs by four billion Swiss francs by the end of 2010 compared to 2008 levels. It said in a statement that this was in order to adapt its size to the changed market conditions and lower levels of business.
Staff levels will be cut by around 11 percent, from 76,200 at the end of March 2009 to 67,500 in 2010. At the bank’s home in Switzerland there will be significant losses of 2,500 jobs.
The majority of other job cuts will come from the US, which is UBS's second largest market behind Switzerland, and will focus on back-office roles, particularly in wealth management.
The cuts are on top of the 11,000 jobs reportedly already cut to streamline the group.
The bank outlined plans to cut 240 positions at its wealth management unit in Asia Pacific.
The Australian newspaper reported, however, that an internal source said that the Australian operations would be largely safeguarded.
As many as 50 jobs have reportedly already been cut in Australia by UBS before this latest round of reductions.
The loss comes at a time when a number of banks, including Goldman Sachs and JPMorgan, are beginning to turn around and into profit.
The bank intends to reduce costs by four billion Swiss francs by the end of 2010 compared to 2008 levels. It said in a statement that this was in order to adapt its size to the changed market conditions and lower levels of business.
Staff levels will be cut by around 11 percent, from 76,200 at the end of March 2009 to 67,500 in 2010. At the bank’s home in Switzerland there will be significant losses of 2,500 jobs.
The majority of other job cuts will come from the US, which is UBS's second largest market behind Switzerland, and will focus on back-office roles, particularly in wealth management.
The cuts are on top of the 11,000 jobs reportedly already cut to streamline the group.
The bank outlined plans to cut 240 positions at its wealth management unit in Asia Pacific.
The Australian newspaper reported, however, that an internal source said that the Australian operations would be largely safeguarded.
As many as 50 jobs have reportedly already been cut in Australia by UBS before this latest round of reductions.
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