UBS to axe 3,500 jobs to cut costs

Swiss banking major UBS today announced plans to slash 3,500 jobs, mainly in the investment banking division, as part of an exercise to cut costs by around CHF 2 billion ($2.5 billion) by the year 2013.

The cost-reduction plan, announced on 26 July 2011, will be achieved through redundancies as well as natural attrition, and further real estate rationalisation, UBS said in a statement.

UBS also expects CHF 550 million in restructuring charges in connection with the cost-cutting exercise. Of this, approximately CHF 450 million will be booked in the second half of 2011, mainly in the third quarter, UBS said.

The restructuring charges include CHF 400 million in costs related to personnel and CHF 150 million to real estate.

Of the expected CHF 550 million in restructuring charges, approximately 55 per cent will be incurred in the investment bank, 30 per cent in wealth management and Swiss Bank, 10 per cent in global asset management, and 5 per cent in wealth management in the Americas, the bank said.

Of the expected 3,500 staff reductions, approximately 45 per cent will come from the investment bank, 35 per cent from wealth management and Swiss Bank and 10 per cent from global asset management while 10 per cent will come from wealth management business in the Americas, it said.