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Unemployed bankers

August 23, 2011

Zurich-based UBS has become the latest bank to announce massive layoffs in a fight to stay profitable amid a strong Swiss franc and high regulatory costs.

The UBS sign on a building
UBS hopes to make savings of up to 1.8 billion eurosImage: AP

The Swiss bank UBS has announced it will cut some 3,500 jobs in a move aimed at saving some 1.8 billion euros ($2.5 billiion).

"The measures announced today are designed to improve operating efficiency. UBS will continue to be vigilant in managing its cost base while remaining committed to investing in growth areas," UBS said in the statement on Tuesday.

UBS had already said it would cut jobs when it posted lower-than-expected second-quarter profit in July.

Nearly half the cuts will come from its investment bank, the firm said. Redundancies as well as natural attrition will account for the lost jobs.

The bank estimates the associated restructuring will cost 485 million euros.

UBS is the latest in a growing list banks, including HSBC, Barclays, Goldman Sachs and Credit Suisse, to cut thousands of jobs.

Author: Sarah Harman (AFP, Reuters)
Editor: Martin Kuebler