Bloomberg reports that Citigroup’s trading and investment-banking unit plans to eliminate 150 more jobs while shrinking bonuses by as much as 10%, extending the toll of Wall Street’s revenue slump, two people with direct knowledge of the decisions said.
The dismissals, which will occur this quarter at the New York-based firm, will affect businesses including equities trading and underwriting, said one of the people, who requested anonymity because the plans haven’t been announced. While bonuses for this year will shrink across the securities and banking division, which employs about 17,000 people, top performers are likely to be spared reductions, the people said.
Chief Executive Officer Michael Corbat, 52, who took charge of Citigroup last month, joins Wall Street leaders in facing an industrywide slump in trading and investment-banking revenue, stiffer capital requirements and Europe’s debt crisis. Goldman Sachs Group Inc., Morgan Stanley and UBS AG (UBSN) are among rivals focused on reducing costs. The latest job cuts at Citigroup were already in the works under Corbat’s predecessor, Vikram Pandit, one person said.
'We have been making targeted headcount reductions throughout the year in certain businesses and functions across Citi as part of our efforts to control expenses during the current environment', Danielle Romero-Apsilos, a spokeswoman for Citigroup, said in an e-mailed statement.
Hit the link below to access the complete Bloomberg article: