Rabobank, the Dutch banking group, pulled most of its global financial markets business from London yesterday, saying that many of its operations were no longer viable.

The bank said that it would reorganise its activities in London, where it employs about 800 workers. Rabobank will keep its corporate banking operations in the capital. Sources said that some markets used by the bank had ceased to exist.

Rabobank, which employs 60,000 people worldwide, described the reorganisation as a “prudent response to the structural changes in the financial markets”. It made no comment about possible redundancies.

Rutger Schellens, a member of the managing board of Rabobank International, said: “We remain committed to our global financial markets business and to our presence in the City of London. We’re convinced that these changes are necessary to ensure the wellbeing of the London branch and its business in the years ahead.”

The bank’s food and agriculture business, through which it provides specialist advice and lending to the two sectors, will stay open.

Rabobank’s partial withdrawal from London came as Michael Page, one of Britain’s largest recruitment groups, said that the deteriorating City environment was affecting hiring at nonfinancial companies. Steve Ingham, the chief executive of Michael Page, said that recent trouble in the City was spreading to other businesses, making them more cautious about hiring. “Unprecedented turmoil in the financial sector during September has eroded confidence in the wider economy,” he said.

Executive recruiters believe that the world’s biggest financial companies may lose as many as 175,000 jobs by the middle of next year as banks shed workers as revenue falls and writedowns grow. Financial companies have announced plans to trim more than 83,000 jobs since July last year.

The CBI estimated last week that 10,000 financial services jobs would go in the next three months alone.

JPMorgan Chase has estimated that 40,000 financial jobs could be lost in London. Overall, the CBI has predicted that the UK’s jobless figure will surge by 450,000 to 2.1 million by the end of next year.

UniCredit, of Italy, was reported yesterday to be planning to eliminate 700 of the 3,500 jobs at its investment banking operations. A German newspaper said that the cuts would be announced today. A spokesman for the bank was unavailable for comment.

Shares in UniCredit on Borsa Italiana fell nearly 4 per cent to €2.81, after being suspended during the day. On Sunday the bank, previously Italy’s largest but now in second place, announced a €6.6 billion (£5.1 billion) capital-raising to bolster its balance sheet. Moody’s, the ratings agency, downgraded UniCredit yesterday, citing “the notable deterioration of its profitability during 2008, which . . . indicates a greater sensitivity to weaker operating environments” and to capital market activities.

UniCredit has already cut its earnings-per-share forecast from 52 cents to 38 cents and blamed more than half the reduction on writedowns at its markets and investment banking business.

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