UBS and Credit Suisse to cut jobs - reports

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UBS and Credit Suisse to cut jobs - reports

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UBS is reportedly set to cut around 5,000 jobs to save more than 860 million euros.

A Swiss daily newspaper, the Tages-Anzeiger citing an unnamed insider, said precise details of the cost-cutting programme still have to be agreed and approved by the UBS board, but should be announced when the bank releases its second quarter results on July 26.

UBS’s rival Credit Suisse is also reportedly planning to axe about 1,000 people.

The Handelszeitung newspaper reported, also citing an unnamed insider, that Credit Suisse would announce its plans along with its results on July 28.

A Credit Suisse spokesman declined to comment beyond reiterating the bank’s standard position that it is always reviewing resource deployment and adjusting its business to market conditions and the needs of its clients.

The Handelszeitung quoted an insider as saying UBS was planning to save about 90 million francs (77.7 million euros) annually by closing 27 offices in Zurich and concentrating staff in five big centres.

Like other global banks, UBS and Credit Suisse are suffering from sluggish markets, but they face the added burden of high cost bases in Switzerland as the safe-haven Swiss franc soars to new record highs against the dollar and the euro.

The strong franc, boosted by concerns over high government debts in the euro zone and the United States, has prompted many Swiss companies to warn their profit margins are suffering.