USB AG announced it will cut 3,500 jobs - the same number as Bank of America - but admittedly in more digestible bites - over the next 2-1/2 years.  The investment banking unit will account for some 45% of the cuts, because it continues to be one of UBS's worst-performing units.  Remaining cuts will come from Wealth Management and Asset Management.  The bank expects to incur one-time charges of about $700 million - most of it to be booked later in 2011. 

Improving Operating Efficiency.   Last month, after the bank reported that Q2 profits fell 50%, CEO Oswald Grübel said he planned to cut costs by $2.5bn, but didn't give further details.  In a statement yesterday announcing the cuts, Switzerland’s biggest bank said it will "continue to be vigilant in managing its cost base while remaining committed to investing in growth areas.”  Analysts, however, have criticized UBS for lacking a clear strategy for the investment banking unit and questioned just how big the business should be within UBS.  Hanging ominously over the investment banking unit has been the departures by senior bankers.

Job Cuts De Rigeur On Wall Street.   Other banks have announced job cuts recently.  HSBC will cut 30,000 jobs, Credit Suisse said it would cut 2,000 positions and the Lloyds Banking Group is in the process of eliminating 15,000 jobs.   [Dealbook, 8/23/11]