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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 |
| (about 2 hours later) | |
| Swiss bank UBS has announced it is cutting 10,000 jobs worldwide as it tries to cut costs and 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, href="http://www.ubs.com/global/en/about_ubs/investor_relations/releases/news-display-investor-releases.html/en/2012/10/30/20121030b.html" > the bank said. | |
| The bank would not comment on where the jobs would go. | |
| But a source confirmed that 100 traders in London were sent home after being told that the part of the business they worked for was ceasing operations. | |
| It is understood that they were met at reception by staff from HR who told them they were going to be made redundant. | |
| They will receive full pay and benefits for the next three weeks in lieu of notice. | |
| It is standard practice that bank employees are prevented from trading the moment they are informed that they are losing their jobs and are only able to collect any belongings under supervision. | |
| UBS currently employs just over 6,600 staff in the UK. | |
| 'Difficult decision' | |
| 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. | |
| 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." |
| 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." | 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. | 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. | 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. |