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U.S. workers to make up hefty slice of UBS layoffs

UBS will eliminate 2,500 positions in Switzerland and up to 2,000 in the United States

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By Mark Bruno

April 15, 2009 1:50 pm ET

UBS could announce that it is laying off 1,000 to 2,000 employees in the United States over the next several days, according to a source close to the Zurich, Switzerland-based bank.

The move would follow on UBS AG group chief executive Oswald Grubel's revelation this morning that the company will cut nearly 9,000 jobs worldwide, or 11% of its work force, by 2010.

UBS acknowledged that it will eliminate roughly 2,500 positions in Switzerland, but he did not specify how many cuts will be made in the United States over the coming months or which UBS units will be affected.

According to a source close to UBS, however, executives will reach out to employees in the United States in a companywide conference call, perhaps as early as tomorrow, to inform them that a number of positions will be eliminated across its various businesses here — including its brokerage unit — before the end of the year.

There will be a "minimal" amount of brokers let go, the source said, but a number of managerial and support positions will be eliminated.

"There was a proposal to let go a number of low producers, but that was shot down immediately," said the source, who asked not to be identified.

Mark Arena, a spokesman for UBS, declined to comment on the number of positions that will be eliminated. But he confirmed that UBS has begun a series of communications globally with employees to follow on the details discussed the company's annual general meeting, which took place this morning.

He also confirmed that the company will hold a call with U.S. employees tomorrow but declined to offer further details.

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