UBS to axe 5,500 jobs

Updated 09.31 Tue May 06 2008

Swiss bank UBS is axing around 5,500 jobs, or almost 7 per cent of its workforce, amid first quarter losses of 11.5 billion Swiss francs (£5.5bn).

In its investment banking arm, 2,600 jobs will by cut by the end of 2008 while the remainder will go across the business by mid-2009.

Around 6,000 of the group's investment banking team is employed in the UK, but it is understood that the bulk of the job losses will affect UBS's US workforce

The Swiss banking giant employs around 9,000 in the UK but it is unclear how many jobs are under threat.

Around 6,000 members of the group's investment banking team are employed in the UK, but it is understood that the bulk of the job losses will affect UBS's US workforce.

UBS, Europe's biggest sub-prime casualty after posting over $37 billion (£18.7bn) in writedowns, cautioned that conditions in financial markets are still tough and declined to offer any results forecast.

Analysts expect the bank to post a net loss of over 5 billion Swiss francs (£2.4bn) in 2008 on the back of the writedowns, restructuring costs and lower earnings.