Employees in Europe have been informed by the Brazilian finance company that bonus payment will be made in February. The scale of bonus cut has been assumed to be based on the performance of individual traders, reports Daily News citing a spokesperson for the Sao Paolo based bank.

The BTG Pactual GEMM Fund has witnessed assets drop to about $250 million from more than $4 billion, estimated in November. This appears to be the key reason for adopting such cost cutting measures. The problem has deepened with eventual house arrest of its former CEO and chairman Andre Esteves in late November.

The bank requires adopting cost cutting approaches to remain profitable in prevailing slower economy of Brazil. However, the manpower cut announced in January 28 has enabled the tumbling business concern to reduce cost by 25%.

BTG has been reported to sell assets and secure a credit line from FGC, Brazil's deposit investment fund to boost up cash flows. BTG has declined to make comments. Stock prices have been witnessed to be slashed by 48% during the last three months and earned the 'worst performer' tag among the global peers from analysts.

BTG has termed the measures as text book example of a very well managed fund combating with extra ordinary circumstances. Very few other funds have been able to meet liabilities in such an orderly manner, cites a BTG Pactual's email statement.