UBS announces 5,500 job cuts

6 May 2008

Swiss bank UBS plans to cut about 5,500 jobs, or about seven per cent of the workforce, the company has said in a statement.

Zurich-based UBS has announced $17.3 billion of first-quarter losses at its investment-banking unit.

The bank already reduced its workforce by 1,500 at the end of last year and it was announced that 2,600 of the new job losses will be at the securities division.

Bloomberg reports that chief executive officer Marcel Rohner and chairman Peter Kurer said in a letter to shareholders that they expect "tough business conditions".

"We expect this difficult environment to remain and be characterised by a continuing unfavourable global economic climate, deleveraging by institutional and private investors, slower wealth creation and lower trading and capital market activity," the two men said.

It is believed that UBS will post a net loss of over 5 billion Swiss francs in 2008 due to subprime write-downs, restructuring costs and lower earnings.

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