UBS said that as part of the continuing restructuring of its troubled investment banking division, which has been hit by crippling writedowns and is suffering from a slump in demand amid the current financial crisis, it will cut 2,000 jobs and exit several business lines.

"The crisis in the financial markets requires us to recalibrate our business," said Jerker Johansson, chairman and chief executive of UBS' Investment Bank, who joined the bank in March from Morgan Stanley. "While the revenue outlook is uncertain, these measures will allow us to focus on our strengths, reduce the cost base to a more sustainable level and position our core businesses for growth once fundamentals improve."