At the UBS AGM, thousands of job cuts were announced as a result of the bank’s poor performance figures.

Swiss bank UBS has announced it is to axe 8,700 jobs in a cost-cutting measure after the firm posted first-quarter losses of 2 billion Swiss francs (£1.2bn).

The jobs losses were announced today (15 April) by Oswald J. Grübel, UBS CEO, at the bank’s Annual General Meeting (AGM) in Zurich.

“Unfortunately I am not able – as yet – to offer you any good news. Instead I am forced to present you with another round of unsatisfactory performance figures and to announce further drastic measures,” said Mr Grübel.

Switzerland’s biggest bank has been hit hard by the economic downturn, especially by the sub-prime loans crisis in the USA.

UBS has adopted several cost-cutting measures with an aim of saving 3.5 to 4bn Swiss francs by the end of 2010.

The major job cuts are “unfortunately unavoidable”, according to the bank.

The bank currently employs 76,200 members of staff in over 50 countries and expects to reduce the number to 67,500 in 2010. UBS stated the job losses would affect the US and Switzerland but did not announce whether any of the 7,000 UBS staff in the UK would be axed.

As a note of encouragement for UBS shareholders, the bank announced that it will “exit high-risk and unpromising businesses”, and is currently performing an internal review for a clear direction in future decisions.

Mr Grübel stated: “We know where we have to set to work. It will be a long road back to success without any quick fixes. Rather, we will move forward step by step in a rigorous and disciplined manner.”