UBS mulls huge job cuts

UBS AG is considering slashing as many as 8,000 jobs to save costs, and will not rule out a possible split of its wealth management and investment banking business, according to Swiss newspaper SonntagsZeitung.

UBS AG is considering slashing as many as 8,000 jobs to save costs, and will not rule out a possible split of its wealth management and investment banking business, according to Swiss newspaper SonntagsZeitung.
UBS chief executive Marcel Rohner reaffirmed at a recent meeting of 300 senior UBS bankers that the company wants to keep its wealth management and investment banking operations under one roof, but he also said alternative plans also have to be considered, according to the report, which didn’t name any sources.
UBS was not immediately reached for comment.
The Zurich, Switzerland-based bank has been one of the worst hit by the financial markets crisis, which is stemming from the demise of faulty subprime home loans in the U.S.
The bank has already posted more than $18 billion in write-downs on such assets last year and analysts are expecting more to come.
Last Friday, CNBC reported that UBS was shopping its Wealth Management US business around.
Citing sources inside the bank, CNBC said UBS had actively explored selling the unit in the fourth quarter, but didn’t find any buyers.
Some of the banks that UBS was looking at included Barclays PLC, Bank of America Corp. and Wells Fargo & Co., according to CNBC.
Responding the the report, UBS spokeswoman Karina Byrne on Friday that the business is “not for sale,” adding that the Wealth Management US business “continues to be part of our leading global wealth management franchise.”