Citigroup to cut 1% of jobs, investment banking to be hit hard
Citigroup is moving to slash hundreds of jobs across all of its segments, which would affect less than 1 per cent of Citigroup’s 240,000-strong workforce.
Reports suggest the Wall Street giant’s investment banking division would be among those affected. Besides, staff from the firm’s operations and technology organisation and its United States mortgage-underwriting arm are likely to be asked to go.
The firm has not given any broad mandate for managers to cut employees. At present, confusion prevails among departmental heads about how to devise a uniform strategy before going for a job cut.
The firm is, however, yet to confirm the move.
It is learnt that its move is spurred by rival JPMorgan's decision to cut hundreds of mortgage staff.
The wobble in the market continues to badly impact the growth trajectory. The advent of the year saw Goldman Sachs embark on one of its biggest rounds of job cuts.
In January, the bank took steps to cut thousands of jobs across the company.
According to reports, Citigroup has shelled out billions in recent years, pumping life into its underlying infrastructure.
CEO Jane Fraser has indicated that these investments are aimed at reducing reliance on manual processes.
“As our investments in transformation and control initiatives mature, we expect to realise efficiency as those programmes transition from manually intensive processes to technology-enabled ones,” Fraser said in January.
The routine cuts are part of Citigroup’s normal business planning, company insiders said.