UBS to Eliminate Another 7,500 Jobs as Loss Widens on Flood of Withdrawals

April 15 (Bloomberg) -- UBS AG, Switzerland’s largest bank, plans to cut another 7,500 jobs, bringing total staff reductions to almost 20 percent of the workforce, amid mounting losses and customer defections.

UBS remains in a “precarious situation” after clients withdrew 23 billion Swiss francs ($20.1 billion) from the main wealth management unit and the bank posted a first-quarter net loss of almost 2 billion francs, Chairman Peter Kurer, who steps down today, told shareholders today in Zurich.

Chief Executive Officer Oswald Gruebel, who was recruited out of retirement in February, plans to save as much as 4 billion francs by the end of next year after UBS posted the biggest credit-related writedowns of any European bank. Credit Suisse Group AG and Deutsche Bank AG have said 2009 started well, and Goldman Sachs Group Inc. this week reported a first- quarter profit that topped estimates.

“We are almost two years into the crisis and they still have seven-and-a-half thousand jobs to cut, I’m very surprised about that,” said Dirk Becker, an analyst at Kepler Capital Markets in Frankfurt. Gruebel “will probably ultimately bring the bank back to strength, but it will take several quarters.”

UBS said it is conducting a review to exit some “high- risk” businesses and locations. Gruebel said some unit aren’t profitable and will be reconsidered, while infrastructure and service operations at the corporate center will be consolidated. UBS has operations in more than 50 countries, ranging from the former Paine Webber Group Inc. in the U.S. and UBS Pactual in Brazil, to offices in Russia, Japan, and Australia.

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of course the bleeding' won't be done by anyone who actually caused this mess. But they have arguably made the worst decisions of all - entering the high risk market at a time when most gamblers started to pull out.. Funny thing is that in this case it was the shareholders pushing for it, and the clerks who are fucked now, not the other way around. (of course the shareholders got it pretty bad too)

I'd be delighted to see UBS blow. I might pay more for my train tickets but I wouldn't have to live in Corpoworld.