UBS cuts jobs after fourth-quarter loss

UBS said it would axe 2,000 more jobs as part of a tough restructuring after posting the biggest ever annual loss for a Swiss firm, although it said client withdrawals had stopped in January.
UBS reported a 8.1 bln Swiss franc ($7 bln) net loss in the fourth quarter, missing a Reuters poll forecast for 7.1 bln. UBS's loss for 2008 came in at 19.7 bln Swiss francs, above analysts' predictions for 18.7 bln francs.
The quarterly loss on Tuesday came on the back of a hefty 8.8 bln Swiss franc trading loss, as well as charges it made after selling billions in toxic assets to the Swiss National Bank when it was rescued by the state in October.
Chief Executive Officer Marcel Rohner told journalists that Switzerland's largest bank was still aiming to return to profit in 2009 after seeing some positive signs in the business environment at the start of this year.
"UBS has had an encouraging start to the year," UBS said in a statement. "However, financial market conditions remain fragile as company and household cash flows continue to deteriorate… Our near-term outlook remains cautious."
UBS continued to suffer massive outflows in the fourth quarter at its core wealth management business. But the Swiss bank said net new money had turned positive in both wealth management and asset management in January, the first time after a streak of negative quarters. It did not give details.
Rohner said UBS will not pay a dividend for 2008.
UBS also announced structural changes to refocus the bank on its core Swiss businesses, its global wealth management operation — the world's biggest — and on the growth potential of its onshore business.
UBS also said it was continuing to cut the size of its troubled investment bank, saying it aimed to bring its total staff to about 15,000 from 17,171 now.