UBS to cut more jobs

UBS has announced its decision on cutting another 10% of its investment banking worforce. The Swiss bank currently has a global workforce of 19,000 employees but this figure will decrease between 1,900 and 2,000 until the end of this year.

This announcement came after a cut of its total workforce from 23,000 to its current 19,000 since the beginning of the crisis.

Of the latest reductions, 550 could come from the fixed income division, with a further 300 or more being taken from the corporate finance and advisory businesses. UBS's equity franchises will contribute with at least 250 reductions. The remaining cuts will come from back-office and support functions.

The bank's troubled fortunes are though to be on the turn.

“There’s a sense that the light at the end of tunnel may not be an oncoming train,” said one UBS employee on Wednesday.

The Swiss giant has forecasted a net profit of SFr755m (€478m) after writedowns of SFr3.3billion in the third quarter of 2008. Since last October, UBS has announced $43billion of writedowns.