Looks like the gloom is coming before we end 2011. UBS is planning to retrench 3,500 jobs to save money. Looks like 3,500 jobs can save $2.5 Billion!! Wow..those bankers must be highly paid at the top of the pyramid. Of course those at the lower rungs are suffering.
ZURICH (Reuters) - Switzerland's biggest bank UBS AG (VTX:UBSN.VX - News; NYSE:UBS - News) is to axe 3,500 jobs to shave 2 billion Swiss francs ($2.5 billion) off annual costs as it joins rival investment banks in reversing the post-crisis hiring binge and preparing for a tough few years.
UBS said almost half the cuts would be in investment banking. It had already said it would cut jobs when it posted weak second quarter profits last month as its underperforming fixed income business weighed.
Like rival Credit Suisse Group AG (VTX:CSGN.VX - News), UBS has been grappling with rising regulatory costs and a red-hot Swiss franc, which are eating into profits.
"The cost cutting is an admission of defeat. UBS overhired after its near-collapse in early 2009, but was unable to win back market share," said Kepler Capital Markets analyst Dirk Becker
0 comments
Post a Comment