UBS have suffered a first quarter loss of 11.5 billion Swiss francs.

Swiss Bank UBS has revealed plans to cut 5,500 jobs over the next year, amidst first quarter losses of 11.5 billion Swiss francs (£5.5bn).

The group said it will cut 2,600 jobs in its investment banking arm by the end of the year, with the remaining roles to be trimmed across the business by mid-2009.

It also stated today (6 May) that it hoped the wider reduction in roles would be achieved through natural turnover.

Just under a third – some 6,000 – of the group’s investment banking team is employed in the UK, but it appears that the bulk of the job losses will affect UBS’s US workforce.

Marcel Rohner, Chief Executive Officer of UBS, said: “We can see tangible effects as a result of our initial responses to the losses. 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.”

The bank has been one of the worst affected by the credit crunch – it has so far reported write-downs of $37bn (£18.5bn), more than any other leading bank.

The first-quarter loss compares with a net profit of 3bn Swiss francs (£1.4bn) in the same period last year.

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.”

For more information, visit: www.ubs.com

and Natasha Piscitelli