Fears are growing that, with big transformational mergers now on the horizon and large companies like Citigroup coming under pressure over costs, there's likely to be blood on the streets as staff who work in the financial markets come in the firing line and face the prospect of losing their jobs.

The proposed merger between Barclays and ABN AMRO is likely to flush out other bidders, and any tie-up with probably result in the next round of industry consolidation. All over the world, investment banking staff are evaluating how likely their firm is to do a deal with a rival (either as a buyer or seller).

And then there the Citigroup situation. Speculation is mounting that up to 15,000 jobs are likely to be culled as the company has struggled in its battle to contain costs. There's talk of more than 10,000 jobs being shifted from Hong Kong, London and New York to lower cost locations, and speculation that Citigroup's Corporate & Investment Banking unit is especially vulnerable, as bosses are said to have been asked to review compensation costs and cut the fat where they can.

Gallows humour is apparently the order of the day over at Citigroup, where worried employees are said to be talking about 'Chucking out time' - referring to the fact that company CEO Chuck Prince will probably have to wield the job axe in order to retain his own position at the helm.

And staff are worried over at UBS Investment Bank, too - although it does appear that they have less to be concerned about. After hiring around 6,000 staff into the investment bank last year, UBS is said to be carefully reviewing the unit's cost / income ratio. No 'slash and burn' exercise here (or hiring freeze), but rather a measured assessment of the needs of the firm in the wake of the building out of the various businesses which took place last year. However, poor performers could still find themselves vulnerable to the chop. And other firms are likely to follow UBS's example.

Whether there's likely to be blood on the streets and large scale job losses any time soon, however, only time will tell. One thing is certain, though - the days this cycle of 'hire, hire, hire' now look over. As a well known Scottish football manager once famously said, it's 'squeaky-bum time' now for all who work in the financial markets.

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