JPMorgan is expected to complete a reduction of up to 10 per cent of its investment banking workforce in Europe during the third quarter of this year, in the latest sign that the economic slowdown is hitting even banks that have weathered the credit crisis well.

The US bank is trimming its mergers and acquisitions and equity and debt capital markets businesses across the board, in particular at vice-president level, according to a person with knowledge of the headcount reductions. The cuts have been under way for several months.