UBS axes 3,500 jobs to cut costs

SWITZERLAND’S biggest bank UBS is to axe 3,500 jobs to shave 2 billion Swiss francs (€1.72bn) off annual costs as it joins rival investment banks in reversing the post-crisis hiring binge and preparing for a tough few years.

UBS said almost half the cuts would be in investment banking. It had already said it would cut jobs when it posted weak second-quarter profits last month as its underperforming fixed-income business weighed on the balance sheet. Like rival Credit Suisse Group, UBS has been grappling with rising regulatory costs and a red-hot Swiss franc.

“The cost-cutting is an admission of defeat. UBS over-hired after its near-collapse in early 2009, but was unable to win back market share,” said Kepler Capital Markets analyst Dirk Becker.