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Swiss Bank UBS is to lose up to 3,000 jobs in its London offices, in one of the biggest banking announcements since Lehman Brothers collapsed.
The bank has immediately cut 100 UBS staff in London. But it is believed that at least 100 traders and half the bond sales team have left.
The slashing of half the bank’s workforce in London is part of a global cull of up to 10,000 jobs, as UBS
dramatically shrinks its troubled investment bank.The City has been hit with a wave of cost cutting as investment banks grapple with a shortage of deals and tougher capital rules introduced since the financial crisis that have eroded profit margins.
UBS said it was winding down fixed-income activities that were no longer profitable because of new capital rules and a weak market.
UBS announced a loss of £1.4bn for the last quarter, compared to a profit of £670m a year ago. The bank faced a one-off charge of £2bn linked to the restructuring of its investment banking division and a debt-related charge of £574m.
The restructuring over three years will leave it focused on wealth management, supported by a smaller investment bank specialising in equities trading, foreign exchange, precious metals, advisory work and research.
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