Shrinking its international investment banking workforce.
The Financial Times reports that VTB Capital has cut its operations in London and New York in a move that highlights how Russia’s second-biggest bank has curbed its international growth ambitions in investment banking.
The bank recently dismissed and relocated up to 50 bankers in London and New York working in areas that include commodities, structured solutions and foreign exchange, three people close to the situation said.
The cuts mark a U-turn for the Russian lender after VTB Capital’s international CEO, Atanas Bostandjiev, three years ago embarked on a hiring spree aimed at taking advantage of retrenchments by Western rivals.
One person close to VTB Capital told the newspaper that the bank was shrinking its international investment banking workforce to about 1,250 staff from more than 1,300, with the brunt of those cuts happening in London, where it used to employ roughly 500.
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