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| Swiss bank UBS cuts 5,500 posts | Swiss bank UBS cuts 5,500 posts |
| (about 5 hours 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. | 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). | 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 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 going through redundancy, the company said. | The investment banking division will see 2,600 jobs lost, with most going through redundancy, the company said. |
| No further information about where the jobs would be cut was given. | |
| High-risk investments | High-risk investments |
| The first quarter has demonstrated that we can address tough challenges on our own and with the support of our shareholders Marcel Rohner, UBS chief executive | The first quarter has demonstrated that we can address tough challenges on our own and with the support of our shareholders Marcel Rohner, UBS chief executive |
| UBS has so far reported write-downs of $37bn (£18.5bn), more than any other leading bank. | 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. | 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. | 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. |
| UBS said on Tuesday it had substantially reduced the level of risk in its investment portfolio since the third quarter of 2007. | UBS said on Tuesday it had substantially reduced the level of risk in its investment portfolio since the third quarter of 2007. |
| "We can see tangible effects as a result of our initial responses to the losses," said chief executive Marcel Rohner in a statement. | "We can see tangible effects as a result of our initial responses to the losses," said chief executive Marcel Rohner in a statement. |
| "While our exposure is still subject to swings in market conditions, we see market demand for these securities returning in certain areas and at the current level of valuations." | "While our exposure is still subject to swings in market conditions, we see market demand for these securities returning in certain areas and at the current level of valuations." |
| Exposure to US sub-prime residential mortgages has decreased by about 60%, the company said. | Exposure to US sub-prime residential mortgages has decreased by about 60%, the company said. |
| Mr Rohner said he did not think the bank's problems meant it had to seek a merger with another company. | Mr Rohner said he did not think the bank's problems meant it had to seek a merger with another company. |
| "The first quarter has demonstrated that we can address tough challenges on our own and with the support of our shareholders," he said. | "The first quarter has demonstrated that we can address tough challenges on our own and with the support of our shareholders," he said. |