8700 UBS Posts Get Sack

UBS is going to axe 8700 jobs around the world in a bid to cut costs after posting a loss of around CHF2billion (USD1.75 billion) for the first quarter. The bank says it is looking to make cost savings of

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UBS is going to axe 8700 jobs around the world in a bid to cut costs after posting a loss of around CHF2billion (USD1.75 billion) for the first quarter.

The bank says it is looking to make cost savings of up to CHF4 billion by the end of 2010 compared to 2008 “in order to adapt its size to the changed market conditions and lower levels of business”.

“Major job cuts are unfortunately unavoidable,” it warns in a statement ahead of today’s AGM. Staff levels will be cut by around 11%, from 76,200 at the end of March 2009 to 67,500 in 2010. Switzerland will see 2500 losses.

The bank has yet to reveal where jobs will be culled but IT positions will inevitably be affected. Yesterday the bank outlined plans to cut 240 positions at its wealth management unit in Asia Pacific.

L.D.

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