Thousands more jobs are to be slashed at Swiss banking giant UBS after it made another huge loss in the first three months of the year.

Hundreds are likely to go in the London investment banking offices where 7000 still work, although 2500 jobs have already been axed there since the credit crunch began in autumn 2007.

Oswald Grübel, the new chief executive, told today's annual meeting: “Unfortunately … I am forced to present you with another round of unsatisfactory performance figures and to announce further drastic measures.”

UBS will cut 8700 posts from its current level of 76,200 by the end of 2010 and said it will exit “high-risk and unpromising businesses”. Grübel said UBS had to rebuild confidence and added: “A loss-making bank cannot win anyone's trust.”

The bank has already cut almost 11,000 jobs since the credit crunch began. It has been Europe's worst-hit bank by the crunch with losses and writedowns of more than $50 billion (£33.3 billion), forcing it to accept a $39 billion bailout from the Swiss government.

About 2500 posts are expected to go in Switzerland and the next biggest cuts will be in the US and London.

Grübel said he wants to take Swfr3.5 billion (£2 billion) to Swfr4 billion of costs from 2008 levels by the end of 2010. He said: “It will be a long road back to success without any quick fixes.”

UBS estimates it lost almost Swfr2 billion in the first three months of 2009. That stems from a further Swfr3.9 billion of losses and writedowns from toxic assets and transfers of toxics into a ring-fenced portfolio.

UBS said it will make cuts in marketing, sponsorship and the use of external consultants. It is dropping its backing of the Hong Kong Open and other golf, sports and cultural sponsorship may follow. Executives at the bank were also warned to expect cuts in their perks. Grübel told them: “UBS has always been a generous employer and many staff benefits were above market and industry norms.”