UBS Expects First Quarter Loss of $1.75 Billion

UBS AG said Wednesday that it expects to report a first quarter net loss of nearly $1.75 billion and that it plans to reduce its workforce by more than 11%.Three years ago the bank was a top ranked subprime securitizer and warehouse lender. In a speech at the company's annual general meeting in Zurich, Group CEO Oswald J. Grübel said the poor performance stems from continuing credit charges tied to illiquid risk positions, and valuation adjustments — most of which are tied to mortgages. Having cut nearly 11,200 jobs since it began writing down mortgage-related securities, UBS expects to reduce its staff to about 67,500 worldwide in 2010 compared to 76,200 currently employed. In addition, the banking giant announced it will exit high-risk and "unpromising businesses" and is currently reviewing which businesses it will remain active in. "We know where we have to get to work," said Mr. Grübel. "It will be a long road back to success without any quick fixes. Rather, we will move forward step by step in a rigorous and disciplined manner."