UBS, Switzerland's largest investment bank, is understood to be considering cutting up to 10 per cent of its workforce, or 8,000 jobs, as investors brace themselves for further sub-prime mortgage-related writedowns.

The bank has already announced plans to axe 1,500 jobs, and a further cost reduction plan could leave nearly 10,000 UBS staff out of work.

The Swiss bank, which reported its first ever quarterly loss of SwFr4.4 billion (£2.2 billion) last month, has confirmed management met in Berlin to discuss the future of its weath management and business banking divisions.

At the beginning of this month, Marcel Ospel, UBS's chairman, said the bank was committed to keeping wealth management and business banking under one roof.

However, it has since emerged that the Swiss bank may reduce assets a further $12 billion in sub-prime mortgage related assets, adding to the $13.7 billion writedowns UBS has already made, prompting talk of a fire sale.

A spokeswoman at UBS said no statement had been made on job cuts at the bank. But she said: "However, systematic cost management remains a crucial priority in all business groups… it is important to note that no decisions have yet been taken.”

Last month UBS revealed it had secured a SwFr13 billion capital injection, SwFr11 billion of which was invested by GIC, the Singapore wealth fund, in exchange for a 9 per cent stake, with the remainder coming from an unnamed Middle Eastern investor.

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