Bank of America Corp. is in the process of reducing the head count in its investment banking and capital markets division by about 3%, said a person familiar with the matter.

The layoffs, to be concluded this week, are tied to annual reviews of personal performance and demand for business in the units, this person said.

Like many investment banks, Bank of America's Merrill Lynch division has resumed the regular process of trimming weak performers and cutting staff when shifting market dynamics and customer demand leave banks with too much staff. That practice was put on the back burner during the financial markets meltdown.

However, Bank of America will have hired three times more people this year than will be laid off, the person familiar with the matter said.

Bank of America's decision to cut staff was earlier reported by Fox Business Network's Charlie Gasparino.

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