UBS AG may cut 5,000 jobs to help save 1 billion Swiss francs ($1.2 billion) a year, Tages-Anzeiger reported today, citing unidentified “insiders.”
Staff account for about two-thirds of operating costs at UBS, the newspaper reported, even after the company removed 10,000 positions since the financial crisis. Employees earn 30 percent more than two years ago and the headcount in Asia rose to 7,600 by the end of March, a gain of 10 percent from a year earlier, the report said.
The slump in stock markets, Europe’s sovereign-debt concerns and high costs from the strong Swiss currency have hurt profitability, Tages-Anzeiger reported. New tax treaties with the U.K., Germany and the U.S. will also affect margins, the newspaper said.
Andreas Kern, a spokesman for UBS, declined to comment on the report today, calling it “speculation.” UBS will publish information on costs and efficiency measures on July 26, according to Tages-Anzeiger.
Credit Suisse Group AG is planning to slash costs by 5 percent, and cut almost 1,000 jobs, Handelszeitung reported, citing an unidentified person familiar with the situation.