Citigroup is cutting thousands of US trading and investment banking jobs this week, part of previously reported plans to slash about 10% of its investment bank division, people familiar with the situation said last night.
The job cuts will affect a number of areas at the largest US bank, but among the hardest hit will be mergers and acquisition banking, they said.
Transaction activity is slowing in mergers, and there have been fewer layoffs in Citi's merger advisory group so far.
Citigroup's CEO Vikram Pandit is working to cut costs after the bank lost more than $15 billion in the last two quarters. Citi is on track to record substantial write-downs for the second quarter, Chief Financial Officer Gary Crittenden said last week.
Banks across Wall Street are slimming down staff levels. The financial sector has announced about 66,000 job cuts this year through May, according to Challenger, Gray & Christmas.
Citi's investment banking division is still keeping the number of layoffs planned at around 6,500, or about 10% of the group's employees globally, one source said. That is in line with the numbers announced earlier this year.
But much of the actual laying off is being done this week and next, a source said. The layoffs are expected to include managing directors and directors, as well as more junior employees.
Citigroup, which has more than 350,000 employees globally - including over 2,000 in Ireland - reduced its work force by about 9,000 by the end of March.
