The City should be bracing itself for more than 6,000 job losses and a fall in bonuses as the full impact of the credit crunch is felt, according to a study by the Centre for Economics and Business Research (CEBR).

The research found that city firms will cut 2,000 professionals positions by Christmas with employment to fall by 6,500 into 2008.

CEBR economist Sarah Bloomfield told The Daily Telegraph that one job would be cut for about every two that had been added so far this year.

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