UBS is planning further cost cutting measures which could threaten thousands of jobs worldwide, particularly in its information technology operation, the TagesAnzeiger reported Saturday.
The newspaper said that the bank is planning to reduce costs at its information technology division from around $3.8bn per year now to $2.57bn by 2015, citing people familiar with the plans.
MarketWatch reports that UBS Chief Executive Sergio Ermotti said in a statement to Saturday, however: 'In principle we don't comment on such speculation, and we haven't yet concluded our business plans for 2013 and the following years. Only when the final decisions have been made, and the next steps decided on, will we make them public'.
UBS is already cutting some 3,500 jobs in its latest restructuring, but some analysts feel that further cuts will need to be made, and that the bank could provide details on 30th October, when it reports third-quarter earnings.
Reuters reported last week, however, that rifts among top UBS managers are hampering Ermotti's efforts to make big cutbacks, especially in investment banking, according to senior sources both inside and close to the bank.
Reuters reported that while 52-year-old Ermotti has been scarcely visible outside the bank since taking over after Oswald Gruebel quit a year ago over a $2bn trading scandal, sources in the bank say he is busy trying to marshal support for more a forceful restructuring.