Oct 14, 2012

UBS to delete 2,000 IT jobs & 10,000 business jobs?

A Swiss newspaper, Tages-Anzeiger, is reporting that UBS will announce 2,000 jobs cuts in IT as part of a larger cost-cutting programme

As per the internal documents that the paper claims to have inspected, UBS' IT annual budget is 3.6 billion francs today & the objective of the cost-cutting is to reduce it to 2.35 billion francs by 2015.

The IT division of UBS has around 8,200 (permanent) jobs - 3,200 of them in Switzerland.

The necessity of layoffs arises from the fact that staff costs comprise 50% or more of the IT budget!

The newspaper also makes the explosive claim that UBS could layoff more than 12,000 employees in total, representing 20% of its workforce!

Expectedly, this exercise has become political inside UBS as each unit tries to minimize blood-letting in its ranks and the executives jostle to maintain or expand their fiefdoms.

Unsurprisingly, UBS spokesperson declined to make any official comment to the newspaper.