UBS fired up to 550 members of staff due to the effect of unauthorized trading last year, it has emerged.
According to the Swiss-based bank's chief financial officer (CFO) Tom Naratil, the financier decided to implement a wave of job cuts after this activity resulted in it suffering losses of around $2.3 billion, Bloomberg reports.
During his testimony in the trial of Kweku Adoboli, the trader alleged to have caused this loss, Mr Naratil explained that staff morale suffered after the illicit dealings and revealed most of these redundancies were made in November and December last year.
Speaking via video link, the UBS CFO commented: "We did have layoffs that continued in the period following the unauthorized trading incident."
Mr Naratil went on to say that while the cuts and bonus reductions implemented by the bank were not solely down to Mr Adoboli's activity, it is clear that a loss of $2.3 billion would have an impact on staffing levels.
By Tony Aynsley