Several thousand jobs are set to be cut at UBS's investment banking division as the bank continues its restructuring process, it has been reported.
Insiders with knowledge of the situation at the Swiss bank have told the Financial Times the company is looking to accelerate its move to its wealth management business, as this is more profitable in the wake of the global financial slump.
Senior officials at the financier held a board meeting in New York yesterday (23 October) to discuss their options and it is thought that further drastic cuts to its investment banking arm are set to be implemented.
Towards the end of last year, UBS made around 2,000 professionals in this division redundant as it strives to reduce the size of its workforce in this area.
Huw van Steenis, analyst at Morgan Stanley, told the news source: "Investors are keen for UBS to shrink capital from the low returning investment bank to reveal the value of wealth management franchise."
By Tony Aynsley