UBS Cuts Thousands Of UK Jobs Amid Restructuring
UBS has confirmed that it is cutting 10,000 jobs as it looks to drastically shrink its ailing investment bank, which has a large presence in London.
Switzerland's biggest bank announced the plans as part of its third-quarter results, which revealed a loss of 2.2 billion Swiss francs (£1.43bn) compared to a profit of 1.02 billion (£0.67bn) in the same period last year.
It said the result for the July-September period was damaged by a one-off charge of 3.1 billion Swiss francs (£2bn) linked to the restructuring of its investment banking division and a debt-related charge of 863 million (£574m).
Chief Executive Sergio Ermotti said the investment unit, which has been hit by a series of costly blunders in recent years, would "continue to be a significant global player in its core businesses" but there would be "a significant acceleration" in its transformation.
The move will see the lender and wealth manager focus on its private bank and a smaller investment bank, ditching much of the trading business that cost it $50bn (£30bn) in the financial crisis and which had been "rendered uneconomical by changes in regulation and market developments".
UBS wants to concentrate on its traditional strengths in advisory, research, equities, foreign exchange and precious metals.
Of the total job cuts, which represent 15% of the workforce, 2,500 positions would be lost in Switzerland while the rest would be felt in the UK and US.
A UBS source told Sky News there was currently no confirmed figure for UK losses but said it would be fair to assume it would be around two thousand.
Dozens of traders in the City were told to go home following the announcement.
Mr 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.
"Throughout the process we will ensure that our people will be supported and treated with care."
UBS shares were trading 6% higher in early trading in Zurich as investors welcomed the transformation plan.