Citigroup Starts to Cut 10% of its Investment Unit
Today, it's expected that Citigroup will start firing around 10% of its investment banking group, which has 65,000 employees.
It's probably that entire trading desks in New York and other cities will be eliminated. Dealbook explains the bank is moving "aggressively to complete the 2,000 layoffs that it announced last March," and these 2,000 layoffs are "on top of about 4,200 announced in January." The Wall Street Journal offered this fact: "Citigroup, which has more than 350,000 employees around the world, had fired at least 9,000 workers as of March 31." Not only that, more layoffs are expected ahead.
Citygroup's shares fell 63% in the past year and took a $5.1 billion quarterly loss early this year. Its CEO Vikram Pandit wants to decrease annual expenses by $15 billion. And Goldman Sachs is expected to lay off 10% of its M&A and corporate fundraising staff.
