Despite a report in Wednesday’s Wall Street Journal suggesting that Merrill Lynch may be contemplating yet another retreat from Canada, the message out of Merrill is that while there may be cuts, the firm remains committed to its presence north of the border.

Merrill executives scurried to deal with the news report that suggested that the firm’s Canadian operations may be on the chopping block along with its operations in Japan, India and elsewhere outside the United States, as the firm looks to cut costs in an effort to deal with the downturn.

According to an internal memo, Merrill Canada’s retail staff are being assured that the firm remains committed to its strategy in Canada. And the new head of the firm’s international group, Kelly Martin, is being cited as confirming the company’s commitment to Canada.

Another message from Merrill CEO David Komansky and Stan O’Neal, its president and COO notes, “As you know, throughout this year we have been carefully reviewing all of our businesses to make sure they are sized and positioned properly for the market opportunity that exists. The pace of this review has accelerated, given a deteriorating business environment faced by our entire industry. As has been the case throughout this process, we do not have an overall, company-wide target for reducing headcount. Decisions are being made on a business-by-business basis. As soon as those decisions are reached, they will be communicated to you promptly.”

The message from Komansky and O’Neal goes on to note that the firm is committed to global leadership globally, “with an active presence in the key financial markets around the world, and positioning ourselves for optimal growth when market conditions improve”. To the extent that Canada is considered a key market, it may well be safe for the most part.

While the firm is doing its best to soothe the troops, and clients, those with longer memories may recall that Merrill has already abandoned the Canadian retail business once before, back in the late 80s.

This time however, the retail presence is substantially bigger and the wholesale side has made strides, particularly in cross-border M&A. Although there may well be cuts to Canadian operations, as there have been already since Merrill came back to Canada, it’s not expected to walk away from the table yet again.