Swiss bank UBS to cut 5,500 jobs

The Swiss bank UBS plans to cut 5,500 jobs after suffering a $10.9 billion first quarter loss due to the US sub-prime mortgage crisis.

The seven percent job loss will include as many as 2,600 positions at the securities division, the company said in a Tuesday statement.

UBS also said it planned to sell a $15 billion portfolio of sub-prime mortgages to a newly created fund managed by BlackRock Inc by the end of June.

Chief Executive Officer Marcel Rohner told analysts he expected 'tough business conditions', which has so far caused $38 billion of markdowns at the company, to continue, forcing the bank to 'manage costs, resources and capacity very actively'.

UBS, Europe's biggest victim of the sub-prime mortgage crisis, had earlier announced 1,500 job losses, which, together with the latest staff cuts, represent an 18-percent reduction of the company's workforce since mid 2007.

Other leading companies have also announced job cuts due to the US credit crunch, which has led to markdowns and losses of $319 billion.

Citigroup Inc, which has suffered almost $41 billion from the sub-prime crisis, cut about 15,200 jobs while Merrill Lynch & Co reduced 5,220 positions.