Merrill Lynch’s global markets and investment banking arm will bear the brunt of the Wall Street group’s plan to slash nearly 4,000 jobs, as fresh writedowns plunged the division to a $4bn (€2.5bn) first-quarter pre-tax loss compared to a $2.2bn profit a year ago.

Merrill today revealed its intention to cut the number of its staff by roughly 4,000 from year-end levels, adding the layoffs will “be targeted in global markets and investment banking and support areas, and will not impact the firm’s financial adviser or investment associate population.”