UBS Announces $1.7B More Losses, 8,700 Job Cuts

Bank blames US tax fraud case for some of its 1Q losses
By Rob Quinn,  Newser Staff
Posted Apr 15, 2009 7:52 AM CDT
UBS said it plans to exit "high-risk and unpromising" areas of its business.   (©Allie_Caulfield)
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(Newser) – Bad times are continuing for UBS in the wake of last year's record loss, the Guardian reports. The troubled Swiss bank reported a $1.75 billion loss in the first quarter, and announced plans to ax 8,700 employees—11% of its global workforce—sparking rumors that it plans to downsize by ditching its investment banking arm to concentrate on wealth management.

UBS said the layoffs were an unavoidable result of its plan to quit "high-risk and unpromising businesses." The bank is being pursued by the SEC and the Justice Department for the names of suspected American tax cheats. It blames the tax fraud allegations for scaring off investors and contributing to a net outflow of new money in the first quarter.