Business

UBS to cut 3,500 jobs worldwide

UBS logo
Image caption UBS has not been helped by a strong Swiss franc

Swiss banking group UBS has announced it is to cut 3,500 jobs globally as part of its cost savings programme.

Some 45% of the job losses will fall on its investment bank.

The move was widely anticipated after the banking group announced plans last month to find 2bn Swiss francs ($2.5bn, £1.5bn) of annual savings.

The bank said it would meet its savings target by 2013 through redundancies and natural attrition, as well as via rationalisation of its properties.

Last month, UBS reported a 49% drop in quarterly profit - worse than expected - after business was hit by weaker trading and the high value of the Swiss currency.

Since then, the Swiss franc - a popular haven for investors worried by poor growth prospects in the US and Europe - has strengthened even further.

UBS expected the restructuring to result in upfront costs of 550m Swiss francs.

"Of the expected... redundancies, approximately 45% will come from the investment bank, 35% from wealth management and Swiss bank, 10% from global asset management, and 10% from wealth management Americas," the bank said in its statement.

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