UBS to Cut 2,000 Investment Bank Jobs

Swiss bank UBS(UBS Quote) Friday said it plans to cut 2,000 jobs as it repositions its investment banking division.

UBS said the latest job cuts will bring staffing levels to about 17,000 by the end of the year, a reduction of about 6,000 since the peak in the third quarter of 2007.

"The ongoing crisis in the financial markets and dramatically changed industry dynamics require us to recalibrate our business," said Jerker Johansson, chairman and CEO of UBS Investment Bank, in a statement. "While the revenue outlook is uncertain, these measures will allow us to focus on our strengths, reduce the cost base to a more sustainable level and position our core businesses for growth once fundamentals improve.

UBS said its investment bank will exit commodities, excluding precious metals, "substantially downsize" real estate and securitization, and proprietary trading. UBS said it plans to preserve its core foreign exchange, rates and credit businesses.

The bank said Thursday it expects to report a small profit in the third quarter after it reduced its U.S. commercial and residential mortgage-related positions. UBS this year has reported large subprime-related writedowns.