RR Donnelley Financial in the City of London has cut 18% of its workforce citing a dip in the worlds markets.

A spokeswoman said there had been a slowdown in European transaction business due to a fall-off of the capital markets.

The firm said that 20 production jobs had gone out of a total workforce of 110.

RR Donnelley Financial opened its new Bishopsgate headquarters in June this year in response to growing demand. This European hub has service facilities in Paris, Frankfurt, Milan and Rome.

The spokeswoman added: "Were still confident that things will improve and are committed to London. Markets are cyclical and always come back up again."

Clients include National Westminster Bank, The Royal Bank of Scotland, Marconi and Carphone Warehouse.

American financial print specialist Bowne also announced a 10% workforce reduction this week; while Burrups, the financial printing arm of St Ives, cut 10% of its workforce last week.

Story by John Davies