UBS is to shed a further 10% of its investment banking workforce in a fresh wave of cuts that will penetrate deeper and range more widely than previous cost-saving initiatives by the Swiss bank.
Between 1,900 and 2,000 job cuts from the investment banking unit’s 19,000 global workforce are being targeted by the end of this year, according to people with knowledge of the plans. UBS has already announced 4,000 cuts in its investment bank since the onset of the credit crisis.
The real-estate group is likely to be hit especially hard, following UBS’s decision to scale back its exposure to mortgage securities. Remaining cuts will come from back-office and support functions. The cutbacks come as the investment banking industry continues to hack at costs.
UBS is expected to spread the cuts globally, albeit with less emphasis on Asia.
The investment bank employs nearly 7,000 in London.
Financial Times, Daily Telegraph