UBS to cut almost 6 percent of tech staff

Wed Jun 22, 2011 11:46am EDT

* UBS cutting 5.7 percent of info tech staff globally

* Savings "in the double digit millions of francs" - source

ZURICH, June 22 (Reuters) - UBS is to cut around 500 technical staff, a spokesman said on Wednesday, confirming a report in the Italian-language paper La Regione Ticino, as the Swiss bank seeks to reduce running costs.

The job cuts account for about 5.7 percent of the Swiss bank's IT workforce, which numbers around 8,700 worldwide. UBS is to axe 200 of its 3,500 specialists in Switzerland, and a further 300 in other locations worldwide.

A source with knowledge of the matter said the move would save the bank "in the double digit millions" of francs per year in staff costs.

An increasingly tough regulatory environment has led some banks to seek to rein in costs. Earlier this month, troubled British banks Lloyds and Royal Bank of Scotland said they would cut some 500 jobs between them.

Of the UBS staff to be cut, 40 have agreed to early retirement, the spokesman said adding that some staff will be reallocated to other positions within UBS, but that there would also be some redundancies.

The spokesman did not say whether the bank would take a charge against the cuts, nor how long the process would take, although he said many of the staff concerned had already been informed they were to be released. (Editing by Jon Loades-Carter) (zurich.newsroom@reuters.com; +41 (0)58 306 7462; Reuters Messaging: martin.desapinto.reuters.com@reuters.net))

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