UBS Reportedly Considers Job Cuts
UBS is mulling the elimination of as many as 8,000 jobs worldwide, according to media reports.
Bloomberg reports the Swiss bank plans to cut between 5 and 10 percent of its workforce across different units, along with proposing a capital increase at its shareholders meeting next month. Rumors were also swirling about a possible sale of the bank's Paine Webber unit, although the bank denied last week the possibility. Over the weekend, a spokesperson said there were "no concrete plans" on job cuts, Bloomberg said.
According to the German newspaper Handelsblatt, cited by Thomson Financial, Chief Executive Marcel Rohner told an internal meeting in Berlin that cost-cutting measure the bank is considering, including job cuts, would "optimize internal processes, avoid duplication and shift projects." At the same time, the Swiss weekly Sonntagszeitung said although UBS's preference is to keep its wealth management and investment banking units in place, "alternative scenarios have to be considered." The newspaper was quoted by Dow Jones.
Early Monday UBS told Dow Jones its overall strategy is unchanged, repeated that none of its operating units are for sale. "There is no change to our business model and strategy," UBS spokesman Serge Steiner told the news service.