Financial services cuts on the cards

THE CITY RUMOUR mill has it that big staff cuts are on the way as banks respond to a falloff in investment banking and trading activities. This could have a knock-on effect in sponsorship as some of the industry’s biggest brands could be involved. Switzerland-based Formula One sponsor UBS, which has come out publicly to confirm it is looking to cut costs and staff, of which it employs 65,000 globally, is an obvious target. Rival Credit Suisse has found its tie up with Roger Federer has not provided any immunity from a deal drought and is also planning to lose 600 staff in its investment banking team. Swiss banks have been hit particularly hard by a rise in the Swiss Franc which has made it a struggle to remain competitive as operating costs and salaries have risen.