UBS is seeking to sack more than 5% of its workforce, The Wall Street Journal reports. The job cut will affect 3,500 employees. Out of the total, 45% eliminations will take place in its investment banking division and 35% in the wealth management and Swiss bank unit. The planned layoffs are aimed at saving $2.53 billion annually.
The company is shedding support staff such as IT employees, whereas client advisers and financial advisers will not face suspension. Connecticut is granting a $20 million loan to the bank over a five-year period in exchange for sustaining 2,000 jobs in the state and spending the funds over that period for infrastructure expenses.