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Citigroup (C) to Slash Jobs in Its IB Division Amid Slump
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In its latest round of staffing reductions, Citigroup Inc. (C - Free Report) will likely cut 30 investment banking (IB) jobs and 20 more in its corporate banking unit in London. The news was reported by Financial News.
Per a person familiar with the matter, the cuts are necessary to reduce its cost base as the bank navigates through adverse market conditions that are dampening top-line growth.
Last week, Reuters and Bloomberg reported that Citigrouptook down its CitiFX global FX strategy and Latin America corporate bond trading teams, respectively.
According to people familiar with the matter, the closure affects all jobs within the CitiFX global FX strategy team that provides commentary and analysis on the foreign-exchange markets. With other parts of the bank like the research division offering similar services, Citigroup has likely decided to cut jobs and dissolve this team, according to a person with knowledge of the plans.
Citigroup’s dismantling of its Latin America corporate bond trading team comes at the heels of liquidity tightening and issuance drying up.
This March, the bank initiated a round of job cuts, slashing hundreds of jobs across the firm, which accounted for less than 1% of its total workforce, per a Bloomberg report. According to people familiar with the matter, the company’s IB division, its operations and technology organization, and the U.S. mortgage-underwriting division were among those affected.
In its IB division, Citigroup was struggling because of the industry-wide slowdown in dealmaking. In its mortgage division, the company was grappling with reduced mortgage demand because of rising prices and a rapid increase in mortgage rates.
Over the past six months, shares of C have gained 5.4% against the industry’s fall of 5.2%.
C is not the only one trimming its workforce. Many other Wall Street firms, including Bank of America (BAC - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) , have been taking similar steps in their IB divisions.
Last month, it was reported that Bank of America intended to eliminate 40 positions in its Asia region’s IB unit. Of the affected employees, the majority are based in Hong Kong, with a particular emphasis on China, and hold junior positions, per people familiar with the matter. BAC’s latest redeployment strategy aims to serve as a temporary measure in response to the dealmaking scarcity and slowdown in China’s economy.
Goldman Sachsis considering another round of job cuts in the upcoming weeks, per people familiar with the matter. In its latest round of layoff, GS is likely to cut fewer than 250 jobs across seniority levels, and include partners and managing directors. This comes after Goldman trimmed its headcount by about 3,200 in the first quarter in its biggest round of layoffs since the 2008 financial crisis. Further, the company cut about 500 jobs last year.
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Citigroup (C) to Slash Jobs in Its IB Division Amid Slump
In its latest round of staffing reductions, Citigroup Inc. (C - Free Report) will likely cut 30 investment banking (IB) jobs and 20 more in its corporate banking unit in London. The news was reported by Financial News.
Per a person familiar with the matter, the cuts are necessary to reduce its cost base as the bank navigates through adverse market conditions that are dampening top-line growth.
Last week, Reuters and Bloomberg reported that Citigrouptook down its CitiFX global FX strategy and Latin America corporate bond trading teams, respectively.
According to people familiar with the matter, the closure affects all jobs within the CitiFX global FX strategy team that provides commentary and analysis on the foreign-exchange markets. With other parts of the bank like the research division offering similar services, Citigroup has likely decided to cut jobs and dissolve this team, according to a person with knowledge of the plans.
Citigroup’s dismantling of its Latin America corporate bond trading team comes at the heels of liquidity tightening and issuance drying up.
This March, the bank initiated a round of job cuts, slashing hundreds of jobs across the firm, which accounted for less than 1% of its total workforce, per a Bloomberg report. According to people familiar with the matter, the company’s IB division, its operations and technology organization, and the U.S. mortgage-underwriting division were among those affected.
In its IB division, Citigroup was struggling because of the industry-wide slowdown in dealmaking. In its mortgage division, the company was grappling with reduced mortgage demand because of rising prices and a rapid increase in mortgage rates.
Over the past six months, shares of C have gained 5.4% against the industry’s fall of 5.2%.
Image Source: Zacks Investment Research
Currently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
C is not the only one trimming its workforce. Many other Wall Street firms, including Bank of America (BAC - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) , have been taking similar steps in their IB divisions.
Last month, it was reported that Bank of America intended to eliminate 40 positions in its Asia region’s IB unit. Of the affected employees, the majority are based in Hong Kong, with a particular emphasis on China, and hold junior positions, per people familiar with the matter. BAC’s latest redeployment strategy aims to serve as a temporary measure in response to the dealmaking scarcity and slowdown in China’s economy.
Goldman Sachsis considering another round of job cuts in the upcoming weeks, per people familiar with the matter. In its latest round of layoff, GS is likely to cut fewer than 250 jobs across seniority levels, and include partners and managing directors. This comes after Goldman trimmed its headcount by about 3,200 in the first quarter in its biggest round of layoffs since the 2008 financial crisis. Further, the company cut about 500 jobs last year.