UBS seen announcing 1,900 new job cuts

by Sanjay Jha | September 30, 2008 at 10:25 pm

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With world economy heading dangerously towards recesion banks have started cutting down jobs. After HSBC banks announced job cut few days back now UBS AG, the the European bank with the biggest losses from the credit crisis, has annouced a job cut. One of the World's big bank HSBS has already decided to cut down 1000 jobs all over the world. It seems tough time to be in the financial sector.

The UBS job cuts would be on top of 7,000 already announced by UBS, which has taken writedowns and credit losses of $44.2 billion since the credit crisis began last year. Lehman Brothers Holdings Inc. the securities firm that filed for bankruptcy two weeks ago, yesterday eliminated 750 jobs in its European fixed income and personal investment management units after talks to find a buyer failed.

Swiss bank UBS may announce plans to cut another 1,900 jobs in its investment banking, equities and fixed income units at its October 2 shareholder meeting, Bloomberg said on Wednesday.

The cuts would represent abut 10 percent of the total investment banking staff, Bloomberg said, citing two people familiar with the matter. UBS has axed about 7,000 jobs since 2007, mostly investment banking and fixed income.

UBS is downsizing its investment banking business and has announced plans to separate it from its prized wealth management arm after risky investments in U.S. toxic assets forced UBS to announce more write downs than any other bank in Europe.

UBS was not immediately available for comment.

UBS is holding an extraordinary shareholder meeting on October 2 to elect four new members to the board. The bank is also expected to give a business update to shareholders.