UBS's shares were on the slide Monday, on rumours that the firm is likely to axe up to another 8,000 staff and sell businesses as it looks to rein in costs and beef up its balance sheet.

UBS shares fell some 11% in early trading Monday to its lowest level for some 9 years, after an article in Swiss Sunday newspaper SonntagsZeitung, reported that the bank planned to cut another 5 - 10% of its staff across the board, was looking at selling some business units and may propose a capital increase at its AGM in April.

The bank has confirmed that there was a meeting of senior management in Berlin last week to review costs and to discuss the firm's wealth management and business banks units. It has, however, denied reports that its US Wealth Management unit PaineWebber is on the block, and has refused to make any specific comment on job cuts. A spokesperson told Here Is The City, however, that although 'systematic cost management remains a crucial priority in all business groups, it is important to note that no decisions have yet been taken'.

Bloomberg quotes Peter Thorne, an analyst from Helvea, who said in a research note that 'if the bank were contemplating a disposal, this suggests a new level of desperation for UBS....Coming at the same time as the collapse of Bear Stearns and concerns about the financial system in general, and banks with suspect balance sheets in particular, we expect continued pressure on the UBS share price'.

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