UPDATE 1-Merrill seen laying off some energy traders - sources

(Adds details)

LONDON, April 23 (Reuters) - Merrill Lynch (MER.N: Quote, Profile, Research) is expected to lay off several U.S. and European energy traders and back-office staff, trading sources close to the U.S. investment bank's operations said on Wednesday.

Two sources said that 10 energy trader jobs would be cut, with the cuts divided equally between Merrill's U.S. and European operations. An unspecified number of back office personnel would also lose their jobs, they added.

"Some employees have been notified of the danger of redundancy and the 90-day process has been started. As of now, they still work for the bank," said one source familiar with Merrill's London operations

Last week, Merrill said it was cutting 2,900 more jobs after recording more than $6.5 billion in write-downs on subprime mortages and other assets, bringing to 4,000 the number of jobs which will cut.

A U.S.-based spokeswoman for the bank was not immediately available for comment.

(Reporting by Janet McGurty; editing by Santosh Menon)