UBS slashes 3,500 jobs in cost-cutting drive

Swiss bank UBS plans to slash around 3,500 jobs, almost half of them from its investment bank, as it seeks to shave some 2 bln Swiss francs from annual costs by the end of 2013.
UBS had already said it would cut jobs when it posted a lower-than-expected second-quarter profit last month as its underperforming fixed income business weighed.
Like rival Credit Suisse , UBS has been grappling with rising regulatory costs and a record high Swiss franc which are eating into profits.
"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," UBS said in the statement on Tuesday.
Around 45% of the cuts will come from UBS's investment bank, 35% from wealth management & Swiss bank, 10% from global asset management and 10% from wealth management Americas.
UBS expects to book a restructuring charge of some 550 million francs, and around 450 mln francs of this will be booked in the second half, with the majority recognised in the third quarter.
The savings will come from redundancies as well as natural attrition, and further real estate rationalisation, UBS said.
Investment banks worldwide have been hit by slow trading due to the debt problems in the euro zone and United States, as well as regulations aimed at forcing banks to hold more capital to protect them from future shocks after the 2008 global financial crisis.
UBS joins a growing line of banks, including HSBC , Barclays, Goldman Sachs , Credit Suisse, in slashing thousands of jobs.