UBS has confirmed it is cutting 10,000 jobs as it looks to drastically shrink its ailing investment bank which has a large presence in London.
Switzerland's biggest bank announced the plans as part of its third-quarter results which revealed a loss of 2.2 billion Swiss francs (£1.43bn) compared to a profit of 1.02 billion (£0.67bn) in the same period last year.
It said the result for the July-September period was damaged by a one-off charge of 3.1 billion Swiss francs (£2bn) linked to the restructuring of its investment banking division and a debt-related charge of 863 million (£574m).
Chief Executive Sergio Ermotti said the investment unit, which has been hit by a series of costly blunders in recent years, would "continue to be a significant global player in its core businesses" but there would be "a significant acceleration" in its transformation.
The move will see the lender and wealth manager focus on its private bank and a smaller investment bank, ditching much of the trading business that cost it $50bn (£30bn) in the financial crisis and which had been "rendered uneconomical by changes in regulation and market developments".
UBS wants to concentrate on its traditional strengths in advisory, research, equities, foreign exchange and precious metals.
Of the total job cuts, which represent 15% of the workforce, 2,500 positions would be lost in Switzerland while the rest would be felt in the UK and US.
A spokesperson for the bank's operation in London told Sky News there was currently no confirmed figure for UK losses but said it would be fair to assume it would be in the thousands.
It is reported that dozens of traders were unable to get in to work in the City this morning as their passes did not work.
Mr Ermotti said: "This decision has been a difficult one, particularly in a business such as ours that is all about its people.
"Some reductions will result from natural attrition and we will take whatever measures we can to mitigate the overall effect.
"Throughout the process we will ensure that our people will be supported and treated with care."
UBS shares were trading 6% higher in early trading in Zurich as investors welcomed the transformation plan.
A former UBS banker, Kweku Adoboli, yesterday denied being a rogue trader when he lost the bank £1.4bn.
The 32-year-old is currently on trial at London's Southwark Crown Court, accused of gambling away the money while working for UBS during the global financial crisis.
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