Citigroup Inc. is planning to cut about 2,000 jobs in its investment banking unit as a slump in dealmaking takes a toll on Wall Street..
The cuts, which represent about 13% of the division’s headcount, will primarily affect bankers in the US and Asia, according to people familiar with the matter. The firm informed staff of the plans on Tuesday..
Citigroup is the latest bank to announce layoffs as dealmaking has slowed amid rising interest rates and economic uncertainty. Goldman Sachs Group Inc. and Morgan Stanley have also cut staff in recent months..
Citigroup’s investment banking revenue fell 54% in the third quarter, and the firm has been particularly hurt by a slowdown in leveraged finance and capital markets activity. The unit generated about 17% of the bank’s total revenue last year..
The job cuts are part of a cost-cutting plan announced by Citigroup CEO Jane Fraser in October. The bank is aiming to reduce its annual expenses by $1.5 billion by the end of 2025..
Fraser has said that Citigroup wants to focus on its core businesses, which include consumer banking, commercial banking, and wealth management. The firm has been reducing its exposure to riskier areas such as investment banking and trading..
The job cuts are expected to be completed by the first quarter of 2023. Citigroup employees who are affected by the layoffs will receive severance packages, career support, and other assistance..
**Here is some additional context on the investment banking industry:**.
* Investment banking is a type of financial advisory service that helps companies raise capital and make mergers and acquisitions..
* Investment banks also provide research and trading services to institutional investors..
* The investment banking industry has been hit hard by the recent downturn in dealmaking activity..
* Rising interest rates and economic uncertainty have made companies less likely to pursue mergers and acquisitions..
* This has led to a decline in investment banking revenue and a round of layoffs across the industry..
**Here is some additional context on Citigroup:**.
* Citigroup is one of the largest banks in the world..
* The firm has a global presence with operations in over 100 countries..
* Citigroup’s core businesses include consumer banking, commercial banking, and wealth management..
* The firm has been reducing its exposure to riskier areas such as investment banking and trading..
**Here are some additional details on the job cuts:**.
* The cuts will primarily affect bankers in the US and Asia..
* The job cuts are expected to be completed by the first quarter of 2023..
* Citigroup employees who are affected by the layoffs will receive severance packages, career support, and other assistance..
