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| UBS cuts 10,000 jobs as it slims down investment bank arm | UBS cuts 10,000 jobs as it slims down investment bank arm |
| (35 minutes later) | |
| Swiss bank UBS has announced it is cutting 10,000 jobs worldwide as it slims down its investment banking activities. | Swiss bank UBS has announced it is cutting 10,000 jobs worldwide as it slims down its investment banking activities. |
| The jobs will go over the next three years, and amount to 16% of its current workforce of 64,000. | The jobs will go over the next three years, and amount to 16% of its current workforce of 64,000. |
| UBS lost 39bn Swiss francs (£26bn; $42bn) during the financial crisis and had to be bailed out by the Swiss authorities. | UBS lost 39bn Swiss francs (£26bn; $42bn) during the financial crisis and had to be bailed out by the Swiss authorities. |
| The cuts are aimed at saving 3.4bn Swiss francs. | The cuts are aimed at saving 3.4bn Swiss francs. |
| UBS chief executive Sergio Ermotti said: "This decision has been a difficult one, particularly in a business such as ours that is all about its people. | UBS chief executive Sergio Ermotti said: "This decision has been a difficult one, particularly in a business such as ours that is all about its people. |
| "Some reductions will result from natural attrition and we will take whatever measures we can to mitigate the overall effect." | "Some reductions will result from natural attrition and we will take whatever measures we can to mitigate the overall effect." |
| Risk averse | Risk averse |
| Zurich-based UBS will focus on its private bank and a smaller investment bank, ditching much of the riskier trading business which was responsible for the bulk of its losses. | Zurich-based UBS will focus on its private bank and a smaller investment bank, ditching much of the riskier trading business which was responsible for the bulk of its losses. |
| In a joint letter to shareholders, chairman Axel Weber and chief executive Mr Ermotti said: "We will no longer operate to any significant extent in businesses where risk-adjusted returns cannot meet their cost of capital." | |
| UBS announced its restructuring plans as it reported its results for the third quarter of the year. | |
| The bank reported a net loss of 2.17bn Swiss francs for the July to September period, compared with a profit of 1.02bn Swiss francs a year earlier. The loss was mainly due to an impairment charge of 3.1bn Swiss francs that UBS is taking to cover the cost of the changes to its investment bank. | |
| UBS was one of the banks hardest hit during the global financial crisis. | UBS was one of the banks hardest hit during the global financial crisis. |
| Then last year, it lost a further 2bn Swiss francs due to the activities of Kweku Adoboli, an alleged rogue trader. | Then last year, it lost a further 2bn Swiss francs due to the activities of Kweku Adoboli, an alleged rogue trader. |
| This prompted the-then chief executive Oswald Gruebel to resign. Mr Adoboli is currently on trial for fraud and false accounting. He denies the charges. | This prompted the-then chief executive Oswald Gruebel to resign. Mr Adoboli is currently on trial for fraud and false accounting. He denies the charges. |