Switzerland’s biggest bank, which had a 3 billion-franc profit a year earlier, is set to spell out plans for layoffs when it reports detailed results on Tuesday. The company will probably say it’s eliminating between 2,500 and 3,000 jobs in its investment bank, more than 10 per cent of the division, two people familiar with the matter said.
Writedowns at the Zurich-based bank after the US subprime mortgage meltdown have swelled to $38 billion over the past three quarters, a result of building a debt securities business at the peak of the market.

UBS already cut 1,500 jobs late last year. The Swiss bank got shareholder approval last month to raise 15 billion francs in a rights offer after receiving 13 billion francs from investors in Singapore and the Middle East in March.
“They’ve got to do something to win back the trust of shareholders,” said Peter Thorne, an analyst at Helvea in London with an “accumulate” recommendation on the shares. “I wouldn’t be surprised if it’s more than 8,000 layoffs,” he said.