Swiss bank UBS AG plans to slash about 3,500 jobs, almost half of them from its investment bank, as it seeks to shave some 2 billion Swiss francs from annual costs by the end of 2013.
UBS had already said that 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 Group AG, UBS has been grappling with rising regulatory costs and a red-hot 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 yesterday.
About 45 percent of the cuts will come from UBS’ investment bank, 35 percent from wealth management & Swiss bank, 10 percent from global asset management and 10 percent from wealth management Americas.
One Zurich-based trader said UBS’ move was in line with expectations and that this trend was likely to continue as other Swiss banks also struggle with volatile markets.
Credit Suisse has already said it would cut about 2,000 jobs, after weak trading activity and the strong franc hit its second-quarter results.
Just this week, Credit Suisse chief Brady Dougan was quoted as saying the bank is bracing for a volatile time ahead as the franc and low interest rates pressure its revenue.
UBS expects to book a restructuring charge of about SF550 million. About SF450 million of this will be booked in the second half, with the majority recognized in the third quarter.
The savings will come from redundancies as well as natural attrition and further real-estate rationalization, UBS said.
Investment banks worldwide have been hit by slow trading because of the debt problems in the eurozone and US, 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 and Goldman Sachs, in slashing thousands of jobs.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
US President Donald Trump has threatened to impose up to 100 percent tariffs on Taiwan’s semiconductor exports to the US to encourage chip manufacturers to move their production facilities to the US, but experts are questioning his strategy, warning it could harm industries on both sides. “I’m very confused and surprised that the Trump administration would try and do this,” Bob O’Donnell, chief analyst and founder of TECHnalysis Research in California, said in an interview with the Central News Agency on Wednesday. “It seems to reflect the fact that they don’t understand how the semiconductor industry really works,” O’Donnell said. Economic sanctions would