Citigroup slashing investment bank jobs this week

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(Agencies)
Updated: 2008-06-23 21:55

NEW YORK -- Citigroup Inc (C.N) plans to cut thousands of trading and investment banking jobs this week, part of previously reported plans to slash about 10 percent of its investment bank division, a person familiar with the situation said on Monday.

A Citibank branch office is shown June 6, 2008 in New York. Citigroup Inc. is about half-way through cutting 10 percent of the 65,000 employees in its investment banking unit, a person familiar with the job cuts said Monday, June 23, 2008. [Agencies]

Still the largest US bank, which posted a $5.1 billion first-quarter loss in April, for now does not intend to increase the number of job cuts from about 6,500, the source said. The investment bank division has about 65,000 employees worldwide.

"Citi indicated earlier this year that it would be re-sizing this business in response to market conditions, as part of our ongoing re-engineering efforts," the bank said in an e-mailed statement. The bank declined to comment on speculation about layoffs this week.

Citigroup, which has more than 350,000 employees globally, has reduced its workforce by about 9,000 workers through the end of March.

The banks mergers and acquisitions business, which so far has suffered fewer job cuts, is expected to see sharp cuts, said another source familiar with the matter. The latest departures will include dozens of senior managing directors, the source said.

Chief Executive Vikram Pandit and John Havens, head of Citi's institutional clients business, have been looking to reduce the size of the division as well change its business mix to reflect the deterioration of market conditions. Whole trading desks slammed by the credit crunch may be eliminated.