Merrill Lynch to cut 4,000 jobs worldwide

Merrill Lynch has revealed plans to cut 4,000 jobs worldwide and a loss of $1.96bn (£1bn) in its Q1 results.

The job cuts make up about 10% of staff and the loss compares with a profit of $2.1bn in Q1 last year.

The results included $4.5bn in write-downs on sub-prime mortgage-backed investments and other high risk assets.

Merrill Lynch, which owns Mortgages PLC and Wave in the UK, has already reported write-downs of more than $24bn in previous quarters.

John Thain, chairman and chief executive officer of Merrill Lynch, says: “Despite this quarter’s loss, Merrill Lynch’s underlying businesses produced solid results in a difficult market environment.

“The firm’s $82bn excess liquidity pool has increased from year-end levels and we remain well capitalised. In addition, our global franchise is positioned strongly for the future, and we continue to invest in key growth areas and regions.”