UBS Announces Cuts in Jobs amid Plans of Overhaul

UBSThe investment banking division of the Swiss bank UBS has reported a big third quarter loss. A recent report reveals that in the wake of the same, the bank has decide make cuts in its jobs by some 10,000 along with cost reductions.

It is being said that the step has been planned to be implemented amid a major plan to refurbish its investment banking division. Some 2.2 billion Swiss francs or $2.3 billion loss had been revealed by the UBS for the quarter ended Sept. 30.

In comparison to the same, a profit of 1 billion francs was recorded at this time last year. However, the reason behind the loss this year has been claimed to be costs incurred on restructuring as well as its own debt charges.

Almost 16% reduction in work force has been planned over the coming two years. And the same does not include the cuts planned last year of 3,500 jobs. The bank says that the cuts would probably bring a cut in riskier operations. Also, profitable wealth management businesses of the bank would be focused on more wisely.

Chief executive, Sergio P. Ermotti said, "This decision has been a difficult one. Some reductions will result from natural attrition, and we will take whatever measures we can to mitigate the overall effect".