Merrill May Cut Workforce Again

The firm has already reduced headcount by around 15,000 during the last year, but the 40% fall in global merger activity in the first half of this year is thought to behind any plans the bank may have for further job cuts.

Merrill declined to comment on the Breaking News report, but did issue a statement which said that 'we continue actively to manage our resources, including expenses and headcount, in line with the business environment'.

Analysts feel that more job losses in investment banking are likely as most firms are still geared up for a more active environment. Many are predicting large-scale culls before the year end.

Deutsche has axed around 13,000 jobs since the start of the year, Goldman has reduced headcount by around 1,500 in the first half and Morgan Stanley has cut 1,300 in the second quarter.