Bank of New York Mellon, which operates asset management and securities services, is to shrink its worldwide workforce of 43,000 by about 4 per cent, or 1,800 positions.

"It has become clear that we need to take additional steps beyond our merger synergies to reduce expenses, given the current weakness in the global economy. We will take advantage of natural turnover to lessen the impact on existing staff," Robert Kelly, chairman and chief executive, said in a statement.

BNY Mellon is joining firms such as Citi and JPMorgan in cutting its total workforce to cope with the consequences of the credit crunch and tightening pressures on margins.

The firm operates in 34 countries serving more than 100 markets, providing financial services for institutions, corporations and high-net-worth individuals.

It has $22.4 trillion in assets under custody and administration and $1.1 trillion in assets under management.