UBS warned of further big job losses in investment banking as the biggest European casualty of the US subprime crisis outlined plans to shrink the operations that contributed to its losing more than $37bn on US credits since last summer.

Addressing shareholders in Basel, Marcel Rohner, chief executive, said further job cuts would be detailed next month. The announcement, which is expected to see bigger cuts than the 1,500 jobs lost since the subprime crisis, will accompany the group’s first-quarter results on May 6.