UBS is expected to announce that it will write down at least $2 billion in illiquid assets and cut another 8,000 jobs in the next few days, Swiss newspaper Sonntag reported Sunday, according to Reuters.
The asset writedowns could come from assets such as Credit Linked Obligations (CLOs) while the job cuts could include some private banking staff, the report stated.
“This could already be known on April 1,” Reuters quoted Sonntag as stating.
UBS declined to comment on Sunday, Reuters reported.
Job cuts anticipated weeks ago
A report from Swiss weekly SonntagsZeitung two weeks ago reported the bank would cut 5,000 senior and management jobs in the upcoming weeks, including up to 2,500 management jobs.
Just prior to that, UBS chief executive Oswald Gruebel told staff in a memo that the firm would have to make additional cost cuts, including headcount, Bloomberg reported.
In the company’s annual report earlier this month, the company said its earnings will “remain at risk for some time to come” as its balance sheet remains exposed to illiquid and volatile markets.
“Our near term outlook remains extremely cautious,” the bank said in the report at the time.
The company said it will continue to reduce its risk positions, its overall balance sheet size and operating costs.