UBS to Cut 3,500 Jobs Η ΜΕΓΑΛΗ ΕΛΒΕΤΙΚΗ ΤΡΑΠΕΖΑ

UBS to Cut 3,500 Jobs By NEIL MACLUCAS ZURICH—UBS AG on Tuesday said it will eliminate around 3,500 jobs as it seeks to reduce its annual costs by about 2 billion Swiss francs ($2.5 billion) in the face weaker earnings, increased regulation and slowing economic growth. The Swiss banking giant said it expects to incur restructuring charges of around 550 million francs as part of the cost reduction plans, with 450 million francs to be booked mostly in the third quarter of 2011, according to a statement Tuesday. UBS's investment bank business will bear the brunt of the cost reductions and job cuts, at 55% and 45%, respectively. UBS last month reported second-quarter net profit fell by half and said the increased capital requirements and the stricter regulatory environment in Switzerland, in addition to a worsening economic outlook, mean it is unlikely to meet the three- to five-year profit targets it set in 2009. "The measures announced today are designed to improve operating efficiency, and UBS will continue to be vigilant in managing its cost base while remaining committed to investing in growth areas," it said. "A surprisingly high proportion of the cuts will be at the wealth management and Swiss banks business, but otherwise there are no big surprises," says Rainer Skierka, an analyst at Bank Sarasin. Swiss banks are also struggling under the weight of the strong franc, which soared to record highs against the euro and the dollar in recent weeks, prompting the Swiss National Bank to cut interest rates to close to zero, and flood the money market with liquidity to damp investor demand for the currency. Credit Suisse Group last month said it planned to trim 4% of its work force to slash spending after disappointing second-quarter results. Wall Street firms, too, are tightening their belts as revenue has faltered because of concerns over the euro zone's debt crisis, and as the U.S. deficit and debt-ceiling talks have stumbled. "The measures announced today are designed to improve operating efficiency, and UBS will continue to be vigilant in managing its cost base while remaining committed to investing in growth areas," it said. Its stock closed Monday at 10.53 francs, for a year-to-date decline of 31%