UBS to cut 10,000 jobs worldwide; India to have impact

ZURICH/NEW DELHI: Swiss banking major UBS will slash 10,000 jobs worldwide, including some in India, as part of massive cost cutting measures.

UBS today posted a steep loss of 2.2 billion Swiss francs ($ 2.36 billion) in September quarter.

The drastic cost-saving drive unveiled by the bank would trim its workforce by nearly 16 per cent from the current strength of 64,000 people.

"UBS will implement lean front-to-back processes across the bank and simplify its product portfolio and production processes. As a consequence, in 2015, UBS expects its headcount to be around 54,000 compared with approximately 64,000 today," it said in a statement.

The Swiss major, which has good presence in India, would be mainly slashing jobs in the investment banking business -- which was one of the group's main revenue generator.

According to sources, UBS' India operations could see job cuts in high double digits. However, no country specific details were provided by UBS.

Without disclosing specific details, UBS Group CEO Sergio P Ermotti said decision to cut jobs has been a difficult one.

"Some reductions will result from natural attrition and we will take whatever measures we can to mitigate the overall effect," he said.

The banking major expects to save costs to the tune of CHF 5.4 billion (Swiss francs).

"UBS is targeting total cost savings of CHF 5.4 billion including incremental cost savings of CHF 3.4 billion above the CHF 2 billion cost savings programme announced in August 2011," the company noted.

The latest measures, to be implemented over a period of three years, would result in restructuring charges of CHF 3.3 billion.

"The complete exit of business lines from the Investment Bank will eliminate associated front-to-back costs," the statement said..

UBS noted that the Investment Bank's reduced complexity and size would also enable a simplification of the group as a whole, including the Corporate Centre, where excess management layers would be removed.

The banking entity's Investment Bank would be focused on its traditional strengths in advisory, research, equities, Foreign Exchange and precious metals, the statement said.

During the financial crisis, UBS had lost around 39 billion Swiss francs forcing the Switzerland government to bailout the entity.