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UBS to cut up to 10 000 jobs
Wednesday, 31 October 2012 12:35pm

Swiss bank UBS AG could cut as many as 10 000 jobs after announcing a $AUD 2.25 billion net profit loss on Tuesday.

As part of a cost-cutting following the result, Switzerland's biggest bank said that it "is likely to have a headcount of around 54 000" by 2015, down from its current 64 000 employees among 57 countries, reported AAP.

UBS also said that it would sharpen its focus on the investment bank, as part of a "significant acceleration" in its transformation, as well as appoint a new executive, Andrea Orcel, formerly of Bank of America Corp, to lead it.

The current co-head of the investment bank, Carsten Kengeter, is stepping down from the group's executive board to unwind the non-core assets, AAP reported.

UBS said it also planned to save 3.4 billion francs in additional costs through 2015, but that the reorganisation also would result in restructuring charges of 3.3 billion francs over the next three years including about a half-billion francs in the fourth quarter.

CEO Sergio Ermotti said the investment unit, which had been hit by a series of costly blunders in recent years, would "continue to be a significant global player in its core businesses," said AAP.

Ahead of the cuts, the value of UBS's stock rose 7.3% to close at 13.12 Swiss francs on Monday on the Zurich exchange. Shares have risen 17% so far this year.

A spokesperson for UBS Australia today said that jobs in Australia would not be effected

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