European wholesale and investment banks are expected to shed about 12,500 staff this year reducing staffing levels to those of 2005 and 2006 as the sector enters a "mini recession", according to JP Morgan research.

Staff at Deutsche Bank and Société Générale could suffer the most with cuts of more than 2,500, or 15% higher than last year's levels, while Credit Suisse will fare better with an estimated 7% contraction, according to a research note by JP Morgan banks analyst Kian Abouhossein.