Bank sheds jobs in face of pressures

The Swiss firm, which employs around 6,000 staff in the UK and 65,000 worldwide, said it would reduce its headcount by 3,500 as part of a bid to save 2 billion Swiss francs (£1.5bn) by the end of 2013.

The job cuts, which were signalled last month and were less than the 5,000 initially feared, will come predominantly from its investment bank and wealth management division. UBS could not specify the number of losses in the UK. Fears over global growth have led to increased risk aversion and lower client activity at UBS as well as a decline in pre-tax profits, which dropped 23 per cent quarter on quarter to 1.7 billion Swiss francs (£1.3bn) in the three months to June 30.

The bank said it needed to cut costs due to the economic downturn as well as regulatory changes, such as the Basel III rules which require the bank to hold more capital. Earlier this month, UBS Wealth Management revealed that it had chosen Yorkshire as the base for its latest UK office. The Swiss financial services firm said it had decided to open an office in City Square, Leeds because of the city’s “impressive entrepreneurial flair and heritage”.

Entrepreneur Richard Bottomley has joined the advisory board and will oversee office’s development. Initially, it will have five staff, but UBS hopes to hire more.