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UBS to axe 5,000 jobs, save $1 bln per year-paper
July 14, 2011 / 5:56 AM / 6 years ago

UBS to axe 5,000 jobs, save $1 bln per year-paper

* UBS to announce cuts with Q2 results on July 26-paper

* Newspaper reported earlier this week UBS, CS to cut jobs

ZURICH, July 14 (Reuters) - UBS is planning to cut around 5,000 jobs and save 1 billion Swiss francs ($1.20 billion) to counteract weak equity markets and an unfavourable exchange rate, a Swiss newspaper said on Thursday, citing unnamed bank insiders.

The precise outline of the cost-cutting programme still needs to be settled on and approved by the board, the Tages-Anzeiger said, adding the bank would announce its plans in conjunction with its second-quarter results on July 26.

UBS could not immediately be reached for comment.

Sluggish stock markets, high costs linked to the strong Swiss franc, a costly expansion in Asia and higher fixed salaries were the main reasons for the need to boost savings, the paper said.

The strong franc, which has repeatedly touched records against both the euro and the dollar in the past six months as investors fret about debts in the euro zone and the United States, has prompted many Swiss companies to warn their margins are suffering.

Earlier this week the Tages-Anzeiger said thousands of jobs were threatened at UBS and rival Credit Suisse .

(Reporting by Catherine Bosley and Silke Koltrowitz. Editing by Jane Merriman)

$1=.8326 Swiss Franc

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