Australian Operations Of UBS Spared From Global Job Cull

Post by Sharat on April 17, 2009 · Under news · Comment

Swiss banking giant UBS which has taken a massive hit as a result of the global banking crisis announced on Thursday that it would be cutting a further 8,700 jobs, on top of the 11,000 it has already culled as part of its rationalization efforts. The group wants to reduce its total staff to 67,500 by 2010.

The cuts are expected to occur mainly in the US and in Switzerland, and will be concentrated in back office functions of its wealth management units. The bank announced this latest cull after having cut 240 wealth management jobs within its Asia-Pacific Private banking unit.

UBS has been one of the investment banks hardest hit by the financial crisis, and in October last year was forced to accept a $US5.3 billion capital injection, and strike a deal with the Swiss Government to transfer the ownership of $US60 billion worth of toxic assets.

UBS recorded one of its worst quarterly performances, with a $SU1.75 billion ($2.42 billion) first-quarter loss which exceeded most analyst expectations for the first three months of the year.

The Australian unit of UBS is arguably one of the leading investment banks servicing the Australia and sources say the Australian operation seem to be safe from the cull and has not been asked to scale back on its business, in the same way that other units have been asked to do globally.

“This will have no consequence on the Australian business,” one source told the Australian. UBS has so far cut about 50 jobs as banks seek to wring out costs in Australia.

The decision by the bank’s head office in Switzerland to cancel bonuses for all staff after the national bailout angered many Australian bankers at UBS, since the domestic arm maintained its spot as the leading investment bank in Australia.

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