Employment at Merrill Lynch Investment Managers is down to about 3,000 from 4,000 people at the market peak, Bob Doll, head of the unit said in an interview with Barron's. Doll said the cuts reflect a consolidation at the firm. The number of funds sponsored by MLIM is now 125, down from 165 at its peak.

Along with slimming down, Doll is also implementing a new compensation package for fund managers. Half of a fund manager's pay is now based on one-, three- and five-year investment performance; one-quarter on assets and one-quarter on peer reviews, he told the paper.

Under the peer review "partnership voting" system managers can vote up to 100 points to each other. 

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