UBS to cut 8700 jobs

UBS to cut 8700 jobs

Swiss bank UBS says it will axe 8700 jobs around the world in a bid to cut costs after posting a loss of around two billion Swiss francs ($1.75 billion) for the first quarter.

The bank says it is looking to make cost savings of up to Sfr4 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.

Earlier this month it hired former Credit Suisse executive Ulrich Körner to lead a major restructuring drive that will include the consolidation of group-wide IT functions at the bank.

The IT units of the business divisions are being consolidated at the group level within an already centralised IT infrastructure unit.

Yesterday the bank outlined plans to cut 240 positions at its wealth management unit in Asia Pacific.

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