Swiss banking giant UBS (NYSE:UBS) will slash its workforce by 10,000 over the next three to five years as part of a major restructuring plan, sources tell The Wall Street Journal.
In addition to the job cuts, UBS intends to consolidate operations, shutting down as many as 15 business operations. Its investment banking unit, which currently employs 16,432, will see its headcount fall by as much as a third.
The restructuring plan will be reviewed by the bank’s board of directors on Monday ahead of quarterly results, which are to be posted on Tuesday.
UBS, which has suffered a string of reversals since the onset of the financial crisis, is looking to concentrate on businesses that do not require significant capital expenditures. It is also looking to boost its capital reserves to meet tightened regulatory requirements.
Sources indicated that the bank will move away from its fixed-income business and focus on equities. The investment banking unit will concentrate on enhancing its wealth management business, which administers about $2 trillion.
Earlier this month, Julius Baer (PINK:JBAXY) said it would eliminate 1,000 jobs as part of its acquisition of Merrill Lynch’s international wealth management unit, which it purchased from Bank of America (NYSE:BAC).