UBS, C.Suisse to announce new job cuts -paper

Tue Jul 12, 2011 1:56am EDT

* UBS to announce new cuts at Q2 results on July 26

* Cuts could hit thousands at UBS

* Credit Suisse seen cutting more than 500 IB jobs

* C.Suisse could also cut private banking jobs

* Many banks cutting back amid sluggish markets

ZURICH, July 12 (Reuters) - Swiss banks UBS and Credit Suisse are set to announce thousands of job cuts as they face falling trading volumes and rising costs given the strong Swiss franc, a newspaper reported on Tuesday.

UBS has set up working groups across the bank to find ways to meet savings targets and could announce thousands of cuts alongside its second-quarter results on July 26, the Tages-Anzeiger daily quoted unnamed insiders as saying.

UBS was not immediately available for comment on the article but the Tages-Anzeiger quoted spokesman Peter Hartmeier as saying the bank would discuss costs as usual at the presentation of its quarterly results.

"Cost management remains a priority for UBS. We are always looking into possibilities to increase efficiency and optimise costs," Hartmeier told the newspaper.

UBS has already said it will cut about 500 technical staff, or nearly 6 percent of its IT workforce.

UBS wealth management head Juerg Zeltner was quoted last week as saying the bank needs to rein in costs given tough market conditions.

The Tages-Anzeiger said Credit Suisse was set to cut more jobs in investment banking than an already reported figure of 500 positions as well as a similar number in private banking.

Credit Suisse spokesman Marc Dosch declined to comment on any specific cost-cutting programmes but said the bank was always reviewing resource deployment and adjusting its business to market conditions and the needs of its clients.

A tough second quarter for investment banking earnings, dragged down by sovereign debt woes in Europe and trading jitters, is prompting many banks to cut back. (Reporting by Emma Thomasson; Editing by Mike Nesbit)