UBS cuts 56 jobs in Luxembourg in cost-cutting drive

The logo of UBS bank is seen in Brussels June 20, 2014. REUTERS/Francois Lenoir/File Photo

ZURICH (Reuters) - Swiss lender UBS has cut 56 back-office jobs in Luxembourg, part of efforts to cut costs as banks struggle to grow revenue.

In a statement on Monday, unions in Luxembourg said they had agreed on support for the bank employees affected by the cuts. UBS had originally planned to cut 60 jobs in Luxembourg but trimmed this number following trade union talks.

The jobs, which provide operational support to the bank’s flagship wealth management business, will be moved to its office in Wroclaw, Poland.

A UBS spokesman declined to comment on Tuesday.

At a time of increased regulatory costs, negative interest rates and restrained client activity, all banks are under pressure to keep a lid on spending.

UBS, which has refocused its business more towards wealth management and away from investment banking since the financial crisis, said in July it had achieved two-thirds of its target to cut costs by 2.1 billion Swiss francs ($2.15 billion) by the end of 2017.

In May, UBS introduced a new organizational structure in wealth management in a move which aimed to cut costs by hundreds of millions of dollars.

Reporting by Joshua Franklin, editing by Louise Heavens