UBS Warburg said its energy-trading unit, acquired from Enron Corp. in February, cut about 130 jobs, or 21% of its staff, after a slump in natural-gas and electricity trading.
The job reductions were at the unit's Houston headquarters and Portland, Ore., office.
Stamford, Conn.-based UBS Warburg acquired Enron's energy-trading business through a bankruptcy auction. It hired 625 former Enron employees.
U.S. shares of UBS fell 69 cents to $47.65 on the NYSE.