So far this year, the IPO market has been dormant and M&A has been weak. There are also signs of a drop-off in venture capital fundings.

And all this is weighing on Thomas Weisel Partners Group, Inc. (Nasdaq: TWPG), which is a boutique investment bank. In Q1, investment banking revenues fell $11.5 million to $52.8 million. There were only 23 transactions, which compares to 49 in the same period a year ago. What's more, Thomas Weisel posted a loss of $17.8 million, or $0.54 per share.

So, are there any signs of improvement? Not really. Basically, the firm is now hoping that M&A transactions will pickup, as corporate clients realize that it is getting difficult to raise capital.

In light of this, it's no surprise that Thomas Weisel is cutting back. There will be a 13% reduction in headcount. And, keep in mind that -- at the beginning of the year -- the firm had already reduced headcount by 9%.

Tom Taulli is the author of various books, including The Complete M&A Handbook (www.mergerbook.com) and is also a principal in Averiware, which provides an ERP system to small and midsize businesses.