UBS AG to cut 10% of workforce in Germany


UBS AG will lay off around 10% of its employees in Germany as part of cost-cutting measures, the head of the company's German operations, Axel Hoerger, said, according to a preview of an article in Die Welt to be published Tuesday.

"Of 1,200 employees, we'll have to lay off about 10%," Hoerger told Die Welt, saying the layoffs would be completed by the end of the year.

In expectation of continued growth, UBS has put together an operation that was too big for the current climate, especially in the area of asset management, Hoerger said.

In its core business of advising wealthy clients, UBS has made losses for years in Germany, the article said. Hoerger said that situation isn't going to change any time soon.

"For asset management, we are envisioning a return to profit in the medium term," he said. In addition to the cost-cutting measures, UBS will also charge higher banking fees.

"Customers who ask for additional services have to expect higher costs," Hoerger told the paper, adding he expects many private banks to follow a similar path.

"Given the immense pressure on margins, they hardly have a choice," he said.

Source: Market Watch