Banks Cutting Back: UBS Reportedly to Lay Off 5,000 Employees, Credit Suisse 1,000

International banks have initiated plans to cut expenses broadly, and employees of two major banks, UBS

and Credit Suisse

, appear to be on the chopping block. Two Swiss newspapers reported Thursday that UBS is planning to cut 5,000 jobs, while Credit Suisse will cut 1,000. Amid new financial regulations and politically unstable operating environment, U.S. banks have already started measures to curtail costs. Goldman Sachs

has created a $1 billion cost-cutting effort that is under way for this fiscal year. The rumored cuts at the two Swiss banks would be indicative of a more global effort to cut out less profitable or soon-to-be illegal portions of the banking business. According to a Reuters report, "Citing an unnamed UBS insider, the Tages-Anzeiger daily said the precise details of the cost-cutting program still had to be agreed and approved by the board, but should be announced in conjunction with the bank's second-quarter results on July 26." Undoubtedly, both Swiss banks are taking a hard look at operations in and out of the U.S. The UBS settlement with the U.S. government over its tax dealings with wealthy clients has forced a new perspective on Swiss banking strategy.