LONDON, England - August 24, 2011 - UBS’s decision to cut 5% of its workforce brings to more than 40,000 the number of jobs cut by European banks in the past month and to 67,000 this year, as the region’s worsening sovereign debt crisis crimps trading revenue.

UBS, Switzerland’s biggest bank, said yesterday it will eliminate 3500 jobs, mainly from its investment bank. It follows HSBC, which announced 30,000 cuts on August 1, Barclays, which is cutting headcount by 3000, and Royal Bank of Scotland, which is eliminating 2000 posts, and Credit Suisse, which announced 2000 reductions on July 28.

European banks are slashing jobs this year six times faster than their U.S. peers, as concerns about the creditworthiness of Italy, Spain and France roil financial markets and reduce income from fixed-income trading, stock and bond underwriting, and mergers and acquisitions.

Financial firms are also cutting costs as regulators force banks to hold more and better quality capital in order to withstand future shocks.

“It’s a bloodbath, and I expect things to get worse before they get better,” said Jonathan Evans, chairman of executive search firm Sammons Associates in London. “I cannot see a lot of those who have lost their jobs getting re-employed. Regardless of how good someone is, no one wants to talk about hiring. Life will be very difficult for two or three years.”