Bank Layoffs Continue: UBS Cuts 3,500 Jobs

Swiss bank UBS

announced plans Tuesday to cut approximately 3,500 jobs in its global workforce, as the wave of cost-cutting initiatives continues through Wall Street. The layoffs are part of a measure to save the bank 2 billion Swiss francs, or about $2.5 billion. UBS expects to see restructuring charges of approximately 550 million francs. 55% of that is expected to be incurred in the Investment Bank, which has under-performed. The remaining 30% of costs will come from the Wealth Management & Swiss Bank, 10% in Global Asset Management, and 5% in Wealth Management Americas. Approximately 45% of the layoffs, or 1,575 people, will come from the Investment Bank. UBS said in its release that the cuts 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," the bank said today. The layoffs echo similar measures across the global banking industry. Large banks like HSBC

and Goldman Sachs

have both undertaken initiatives to trim expenses by scrutinizing budgets. UBS in particular has been under intense pressure this year, as its share price has deteriorated considerably. Trading at $20 in late April, the stock now sits in the low $13s. Its market capitalization now stands below $50 billion.