Business NEWS

UBS axed 240 Jobs in Asia-Pacific Wealth Mgmt group

By Amarendra Bhushan for CEOWORLD Magazine Updated:April 14, 2009

Swiss bank UBS AG (UBS) is laying off 100 staff in Singapore, which together with Hong Kong as part of efforts to cut costs.

The bank is shedding 240 jobs, or about 8% of the work force altogether in Asia Pacific, all from its wealth management group.

UBS said this represents less than 3 per cent of the bank’s total staff in the region. The bank said affected employees will receive severance packages.

The Swiss banking giant, among the worst hit by the global financial crisis, announced in March an upward revision in full-year loss for 2008 to 20.9 billion Swiss francs (18.35 billion US) from almost 19.7 billion initially.

The bank, which has posted more than $50 billion in write-downs and taken aid from the Swiss government, is expected to provide an update on its first-quarter financial results at a shareholders’ meeting Wednesday.

Despite the move, UBS said Asia Pacific remains a strategic priority for the group, and a region in which it will continue to invest.

But a slowdown in the global economy and the challenging economic conditions have prompted a renewed focus on the management of costs. This includes staffing-related costs, as a last resort.

It has already shed 11,000 jobs after exposure to the United States subprime mortgage market crisis.

The cuts come two months after UBS brought former Credit Suisse boss Oswald Grübel out of retirement and installed him as chief executive. UBS, which has been profoundly hurt by the credit crisis, has been undertaking various measures to revive its credibility and profit.

Sphere: Related Content

Like this article! ‹ Philips hit by consumer, automotive, healthcare weakness Qwest’s Ex-CEO Joe Nacchio Ordered To Prison ›
Share this Post: Get It Delivered To Your Inbox