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Swiss bank UBS cuts 5,500 posts | Swiss bank UBS cuts 5,500 posts |
(10 minutes later) | |
Swiss bank UBS, which has suffered huge losses as a result of the US sub-prime mortgage crisis and credit turmoil, is cutting up to 5,500 jobs. | |
The bank also unveiled losses for the first quarter of 2008 of 11.5bn Swiss francs ($11bn; £5.5bn). | |
UBS said it expected current "tough trading conditions" to remain, forcing the group to "actively" cut costs. | UBS said it expected current "tough trading conditions" to remain, forcing the group to "actively" cut costs. |
The job losses - 7% of the workforce - will go by mid-2009 through redundancy, redeployment or natural wastage. | |
The investment banking division will see 2,600 jobs lost, with most through redundancy, the company said. | |
UBS has so far reported write-downs of $37bn (£18.5bn), more than any other leading bank. | |
In a report to shareholders last month, the bank admitted its growth strategy had been too ambitious and lacked sufficient risk control. | |
That plan had led to a substantial exposure in its investment banking arm to much riskier assets, including investments linked to the US sub-prime market, whose value plummeted when the housing slowdown and credit crunch took hold. |