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September 25, 2022
BUSINESS

UBS cuts 10,000 jobs

Swiss bank UBS has announced it is cutting 10,000 jobs worldwide as it slims down its investment banking activities, BBC informs. The jobs will go over the next three years, and amount to 16% of its current workforce of 64,000. UBS lost 39 bn Swiss francs (USD 42 bn) during the financial crisis and had to be bailed out by the Swiss authorities. The cuts are aimed at saving 3.4 bn 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.” The bank reported a net loss of 2.17bn Swiss francs for the July to September period, compared with a profit of 1.02bn Swiss francs a year earlier.

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