The Swiss banking giant, UBS posted the worst fiscal year loss ever at a whopping $17 billion�(13 billion Euros) and announced a reduction of their workforce by 1,600 employees.

The fourth-quarter loss amounted to $6.9 billion, exceeding analysts estimates of $5.4 billion. The losses were mostly incured by the company’s investment bank.

A difficult future ahead

Over the past 18 months UBS has aggressively managed the challenges of the financial crisis. UBS raised capital from private investors and from the Swiss government, reduced its cost basis, continuously reduced its balance sheet and substantially reduced its positions in troubled securities, including through the transaction with the Swiss National Bank (SNB). Furthermore, UBS has strengthened its governance, improved risk controls, streamlined its management structure and introduced an innovative, forward-looking compensation model.

Marcel Rohner, Group CEO, said: 揟he conditions for the financial industry have changed and will remain different for the foreseeable future. We have adjusted our businesses such that they are best positioned to be profitable and to grow sustainable earnings in a new environment.”

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