UBS Group has reportedly started job cuts across its wealth and investment divisions as well as in its Swiss business.

The move is said to be part of the bank’s restructuring plan to save $1bn over the next three years.

The move will impact employees ranging from managing director to junior employees, Bloomberg reported citing people familiar with the matter.

According to the sources, UBS is planning to cut as many as 700 jobs in Switzerland alone.

While most of the redundancies are planned at the corporate cost centre, about 200 jobs are expected to be eliminated across wealth management and Swiss unit for personal and corporate banking.

UBS CEO Ralph Hamers is looking at options to cut costs and digitise the bank’s offering.

Earlier this year, reports emerged about the Swiss bank is planning to shutter 44 of its 239 branches in Switzerland over the next few months to focus on digital channels.

During first quarter earnings last month, the bank said that it would take a $300m restructuring charge related to the cuts in the second quarter. It did not divulge any further details.

UBS did not comment on the news.

At least a dozen managing directors and junior employees in the advisory and trading units of the investment bank have been laid off recently by the bank, according to the sources.

These redundancies were positions that almost exclusively served the wealth unit’s clients, they added.

In addition, five managing directors and several executive directors in the wealth management division are also said to have lost their jobs.

UBS reported a 14% profit growth in Q1 2021, though the performance was marred by a $774m hit from exposure to collapsed US-based hedge fund Archegos Capital.

Archegos was a customer of the bank’s prime brokerage business.