Swiss banking giant UBS today announced plans to shed 3,500 jobs in order to make savings of some 2 billion Swiss francs (€1.8 billion).
UBS said it aims to make the personnel cuts 'through redundancies as well as natural attrition'.
The news comes after an announcement last month by Credit Suisse, second only to UBS in Switzerland, of 2,000 job cuts after a 52% plunge in its second quarter profit due to Europe's debt crisis and global economic fears.
UBS quarterly figures in July were similarly disappointing, with profit down 49% to 1.015 billion francs. UBS, based in Zurich, said at the time it announced those figures that it would slash costs by 1.5 to 2 billion francs over the next two to three years, a move which would force it to book 'significant restructuring charges later this year'.
'UBS today provides an update on its plans to eliminate expenses of a total of approximately 2 billion Swiss francs from annual costs by the end of 2013,' the company statement said.
'These plans include savings associated with headcount reductions of approximately 3,500, which will be achieved through redundancies as well as natural attrition, and further real estate rationalisation,' it added.
Of the expected 3,500 staff reductions, approximately 45% will come from the company's investment bank, 35% from its Wealth Management and Swiss Bank arm, 10% from Global Asset Management, and 10% from Wealth Management Americas.
UBS estimates the associated restructuring to cost 550m Swiss francs, most of which will be booked in the second half of 2011.
'The measures announced today are designed to improve operating efficiency. UBS will continue to be vigilant in managing its cost base while remaining committed to investing in growth areas,' the company said in its statement.
