Switzerland biggest bank UBS AG to cut up to 10,000 jobs: Source

27 Oct 2012 18:05

The largest bank in Switzerland, UBS AG, is likely to slash as many as 10,000 jobs, which account for 16 percent of the bank’s workforce, amid shrinking revenue and rising capital requirements, a source familiar with the company said.

Speaking on condition of anonymity, the source stated on Friday that many of the layoffs will be expected to come in the trading businesses and probably will occur over several quarters globally.

The bank, which employs over than 60,000 people, will announce the details of the cuts when it releases its third-quarter results on October 30, the source added.

Since the beginning of the financial crisis in Europe, UBS has been battered with billions of dollars in trading losses, management mishaps and scandals.

Last year, the Swiss bank said it would cut only 5 percent of its workforce, or about 3,500 jobs. It also appointed new executive management that has promised to emphasize its wealth management business and decrease its capital markets activities.

Europe plunged into financial crisis in early 2008. Insolvency now threatens heavily debt-ridden countries such as Greece, Portugal, Italy, Ireland and Spain.

The worsening debt crisis has forced the EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.

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