Credit Suisse said it was cutting around 75 jobs in its UK operations, becoming the second investment bank in as many days to slim down as economic fears hit the deal-making business.

“We are currently reducing headcount by approximately 75 in the United Kingdom in the investment bank and certain support functions,” the bank has announced.

Britain's Barclays will cut about 400 back office jobs in its investment bank across the world, a person familiar with the matter told reporters.

Financial market jitters in the wake of Europe's debt crisis have hurt income at trading desks, while client caution has depressed fee income from capital raisings.

This will result in job cuts across the industry in the next two months if there is no pick-up in the third quarter, bank industry sources have told reporters.