Citigroup, reducing its trading and investment-banking workforce by 10 per cent, may begin a round of job cuts as soon as this week, a person familiar with the matter said.
The largest US bank is about halfway through the 6,000 job cuts at the division signaled in March, said the person, who asked to remain anonymous because Citigroup hasn't disclosed its plans publicly.
Citigroup employs 300,000 people across all divisions including 2,000 in Ireland and has announced more than 13,000 job cuts this year.
Citigroup Chief Executive Officer Vikram Pandit is cutting costs and shedding assets after the bank posted two straight quarterly losses totaling $15 billion.
The world's largest banks and brokerage firms, including JPMorgan Chase & Co., Merrill Lynch & Co. and Bear Stearns Cos., have slashed more than 80,000 jobs since subprime mortgage defaults infected credit markets and triggered almost $400 billion of losses.
The bank has lost more than any other in the mortgage market collapse and its shares have tumbled 63 per cent over the past year. Mr Pandit (51), was promoted in December to replace Charles O Prince, who was ousted in November.
"Citi indicated earlier this year that it would be resizing this business in response to market conditions and as part of our ongoing re-engineering efforts," Dan Noonan, a spokesman for the division, said in a prepared statement.
The company in January announced it would cut about 4,000 jobs in the securities division, then said in March that the number had increased by about 2,000.
In April the bank said it would eliminate 7,000 jobs outside the investment banking division over the next year, and executives have said that further reductions are likely.
The
Wall Street Journalreported earlier today that some employees may begin receiving termination notices tomorrow.
Goldman Sachs Group will cut as much as 10 per cent of the jobs in its investment banking division in one of its largest single rounds of headcount reductions this year, the
Financial Timesreported, without citing anyone.
Bloomberg