UBS and Credit Suisse to announce new job cuts

Two of the world's most powerful banks, UBS and Credit Suisse are set to announce thousands of layoffs due to weak trading volumes and rising costs, according to the Tages-Anzeiger newspaper.

Quoting unnamed sources, the newspaper said UBS has set up working groups across the bank to find ways to meet savings targets and will announce a restructuring that will impact thousands of jobs.

UBS has declined comment, preferring to discuss costs when the bank announces its quarterly results.

According to Reuters, UBS has already said it will cut about 500 technical staff, or nearly 6 percent of its IT workforce.

Analysts predict UBS will cut staff at its Investment Products and Services unit, which was created last year to provide products to the bank's wealthy clients, where there have been concerns about efficiency after more than 2,000 new employees were brought on.

The Tages-Anzeiger also reports that Credit Suisse was set to cut more jobs in investment banking than an already reported figure of 500 positions as well as a similar number in private banking.

Credit Suisse also declined to comment on any specific cost-cutting programs but said the bank was always reviewing resource deployment and adjusting its business to market conditions and the needs of its clients.