Swiss Bank UBS Sheds 8 700 More Jobs

Switzerland's biggest bank, UBS, has said it will seek to cut costs by shedding 8 700 jobs before the end of the year.

The news came as the bank announced it had lost about USD 1.75 B in the first three months of 2009.

UBS has been one of the biggest banks hit by exposure to the sub-prime loans crisis in the US and ensuing turmoil, the BBC reported.

The Swiss bank is also being probed by the US authorities over alleged fraud and tax evasion involving US citizens.

UBS said it will shed 2 500 jobs in Switzerland, and thousands in the US, but did not say how many may be lost in the UK, where it employs 7 000 people.

The announcement came ahead of the bank's annual shareholder meeting.

The world financial downturn has already forced UBS to make about USD 50 B in write-downs and to announce 11 000 job cuts since the middle of 2007.

In late 2008, it transferred billions in toxic debts to a fund owned by the Swiss National Bank to take them off its balance sheet.

Meanwhile, the bank remains embroiled in talks with the US authorities over tax issues.

In February, UBS agreed to pay USD 780 M to the US government to settle allegations that it had defrauded US tax authorities.

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