UBS AG, Switzerland's biggest bank, will cut about 10,000 jobs and retreat from capital-intensive trading businesses at the investment bank to boost profitability.
The bank plans to save about 3.4 billion Swiss francs ($3.6 billion) in additional annual costs by the end of 2015 as it reduces headcount to about 54,000, Zurich-based UBS said in a statement today. The company will target a return on equity of at least 15 percent starting in 2015, compared with a previous goal of 12 percent to 17 percent.
Chief Executive Officer Sergio Ermotti is overhauling UBS as stricter capital requirements and sluggish client activity hurt profit at the investment bank. UBS will focus more on its wealth management business, the world's second largest, to boost returns for shareholders.
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