New Delhi: The biggest bank in Switzerland, UBS, is expected to announce a further round of job cuts on Thursday, axing about 1,900 in its various departments like investment banking, equities and fixed income units.
The UBS has suffered the biggest losses from the credit crisis among all the European banks.
The cuts which are likely to be announced at a shareholders’ meet are said to represent about 10 per cent of the group's total investment banking staff and would also hit support staff jobs according to experts.
So far UBS had to write down $44.2 billion dollar, the biggest amount for any European bank.
UBS’s shares had begun tumbling in mid September after the bank said the cost of closing its exposure to Lehman Brothers would be up to $300 million (£167.9 million).
The Lehman and UBS job cuts would bring to more than 131,700 the number of jobs eliminated at banks worldwide in the last fifteen months.
The Swiss banking giant had said it had decided to put out a statement on its exposure to Lehman. This had come after research by Bernstein suggested UBS would have to pay a much bigger price.
The collapse of the Lehman Brothers bank has had a cascading effect on the market. Fears of a global financial meltdown have been growing as the world’s biggest bankruptcy plunged markets into turmoil.
The UBS has been taking a severe bashing for months over costly bets on the U.S. home loans market.
Now it has the chance to reassure its valued investors about its financial situation and its strategic outlook at the forthcoming extraordinary shareholder meeting.
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