Financial News
- 31 October 2012, 18:27
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.
what do you think?
Lorgar Aurelian
Cry me a river.
Gordon Berry
How stupid can you get
Lorgar Aurelian
For the benefit of the stupid (i'm looking at you Gordon) i was referring to the company, not the staff. Bit of an irony deficiency have we?
Dave Harrison
No doubt some on here will be happy in the knowledge that some of their hated bankers are getting their come uppance. Me ? I am saddened by the fact that thousands of people are losing their jobs with all the resultant misery this brings.
Tricky One
Well said. It's the lowest level workers that are being culled here..
Michael Hawkins
Still Job loses and loss of spending power in the shops which could result in loss of further jobs
Peter Coates
Bit like this ee lot. Shoving their prices up then telling us the service is better. Yes, better for them.
Ben Ralph
Good day to bury bad news, UBS......
happymike CHESTER
These are suppose to be the brightest children lets see them put to more productive work ., manufacturing ,science , farming . and medical uses instead of corrupt banking trading.They will be more respected than free loading bankers.
Grant Berry
Sorry, but a job is not a "right." And while we are at it, neither is housing, health care, the internet, or a free lunch.
Michael Mcardle
this has just go to be scaremongering. after all how can all these jobs be going not just in the banking sector but right across the board. hasnt dodgy dave just been on tv shouting from the rooftops the economy is on the road to recovery. does this chalatan actually know anything at all about running a country. lie after lie falls from this blokes mouth he oughta be in gaol never mind downin g street
david roberts
6:24am on 30/10/2012
bbcnews called these job cuts sackings