UBS AG said Wednesday it will cut 11 percent of its production, in an effort to save 4 billion Swiss francs, or $3.5 billion, after its first quarter losses on write-down's and clients withdrawal.
The largest Swiss bank said it plans to shed 8,700 jobs for the quarter and would likely be forced to cut around 67,500 more jobs by the end of 2010.
The company already expects a first quarter loss of 2 billion Swiss francs. However, it also plans to “exit high-risk and unpromising business,” and focus on its core businesses: Swiss banking, wealth and asset management and investment banking, Chief Executive Oswald Grubal said.
UBS has already announced 11,000 job cuts since the global financial meltdown in 2007, will trimmed about 2,500 in Switzerland and 3 percent or 240 employees on its wealth management group in Asia-Pacific according in the separate statement.
It also reported recently a net loss of 8.1 billion Swiss francs ($7 billion) in the fiscal fourth quarter from 12.967 billion a year earlier and had accepted a 6-billion-Swiss-franc cash injection from the Swiss state last year.
UBS has already been force to write down $50 billion or 33.6 billion pounds of assets is expected to announce earnings on May 5.
Shares fell 43 cents to 3.84% at $10.76 in the early trading.
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