The move comes as part of a “repositioning” of its investment bank, which will see around 2000 staff cut from its global workforce of 19,000 before the end of this year. Over 4000 staff have already been made redundant this year, subsequent to the bank losing around $42 billion in the credit markets.
A UBS spokesman said that staff numbers in the fixed income, currency and commodities (FICC) division will be cut by 21%, without giving a specific figure. The FICC division will be repositioned “around client servicing and facilitation”, according to a UBS statement.
The spokesman stated that UBS will maintain an exchange-traded derivatives presence in commodities, and will continue to offer commodity-related structured products.
“The ongoing crisis in the financial markets and dramatically changed industry dynamics require us to recalibrate our business,” said UBS CEO Jerker Johansson in a statement.
UBS had scaled back its energy operations earlier this year, but remained present in US and European natural gas and power markets and the oil markets. The bank also had a presence in base metals, as an associate broker clearing member of the London Metals Exchange.