Swiss financial giant UBS has announced plans to slash up to 5,500 jobs - about 7 per cent of its total workforce.

The bank also said it lost $11bn in the first quarter of 2008 as a result of the US sub-prime mortgage crisis and credit turmoil.

Writedowns have more than doubled to a whopping $37bn.

The job losses are expected to go by mid-2009 through redundancy, redeployment or natural wastage.

Zurich-based UBS said it would cut 2,600 jobs at its trading and investment banking division.

"UBS expects financial industry conditions to remain difficult - with a continuing unfavorable global economic climate, deleveraging by institutional and private investors, slower wealth creation and lower trading and capital markets activity," the firm said in a statement.

"This will require UBS to manage costs, resources and capacity very efficiently."

The US sub-prime problems have hit the profits of banks worldwide, as rising mortgage defaults and falling US property prices have meant loans bought by banks are worth less than thought.

The article UBS to cut jobs after huge losses originally appeared on 999 Today