Citigroup Inc. intends to reduce its workforce by eliminating 30 jobs in its investment banking division and an additional 20 positions in its corporate banking unit in London. The decision to implement these job cuts is attributed to the bank’s need to reduce costs due to unfavorable market conditions, as disclosed by an anonymous source within the bank. Financial News previously reported on the impending layoffs.
In addition to the aforementioned reductions, Citigroup is also in the process of dismantling its global team responsible for providing analysis and commentary on foreign exchange markets. This restructuring will result in departures from both London and New York, as well as the dissolution of its Latin America corporate bond trading team, according to separate reporting by Bloomberg News on Thursday.
Major investment banks on Wall Street continue to face a subdued environment for dealmaking, with macroeconomic concerns and volatile markets constraining merger and acquisition activities. Earlier this year, Citigroup initiated a series of job cuts across the organization, affecting its investment banking division among other areas, as reported by Bloomberg in early March.
When asked, a spokesperson for Citi declined to confirm if these latest job cuts are part of the previously reported reductions mentioned by Bloomberg in March.
It should be noted that the number of job cuts represents less than 1% of Citigroup’s total workforce of 240,000 employees, as stated by individuals familiar with the matter at the time. The routine cuts are part of Citigroup’s regular business planning and impact various areas of the company, including its operations and technology organization, as well as its US mortgage-underwriting arm.
