UBS is to make serious cut backs to its work force as the credit crunch continues to take its toll. The Swiss bank is to make 5,500 people redundant – a number which amounts to 7 per cent of its work force. 2,600 will be compulsory reduncancies . The news comes as UBS announce a £5.55 billion first quarter loss, roughly £7 billion below their performance in the first quarter of 2007.
The bank has, however, been able to sell $20 billion worth of subprime debt in a move which suggests the troubled sector is finally starting to improve. Although the mortgage debt is being sold at a 25 per cent discount – for $15 billion – fund management firm Blackrock are to provide UBS with a boost of capital.
The job cuts aren’t surprising given that UBS have been the hardest hit of any European bank by the effects of the subprime crisis. In total, UBS have written off £18.8 billion since the start of September last year.
The bank has already cut 860 jobs since the sub-prime crisis, and has reduced salaries and bonuses in some of its struggling departments, namely its investment banking unit.
UBS to Make Banking Job Cuts
UBS to Make Banking Job Cuts
Wed, 07 May 2008
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