UBS plans to cut 10,000 of the bank's 63,250 employees.
High overhead and weak demand have prompted Switzerland's largest bank to reduce its workforce to compensate for sluggish trading.
It's all part of Chief Executive Officer Sergio Ermotti's plan to “to tackle the current challenging market environment and paradigm shift."
“UBS is a microcosm for the industry,” Mark Williams, a lecturer at
Boston University’s School of Management, said in an interview with Bloomberg. “The
banking business model is changing and we’ve got to look at cost
structure, we’ve got to look at compensation, and we’ve got to
Job losses in the financial industry have become common in recent years. The industry shed 28,000 jobs in the first nine months of 2012, and 54,000 jobs in the first nine months of 2011.
More details of UBS's layoffs are expected to come October 30th when the company reports its third-quarter results.