Citi to Cut Hundreds of Trading Jobs in Bad Sign for Wall Street [View all]
Citigroup Inc. is preparing to cut hundreds of jobs in its trading division -- stark new evidence that an industrywide slump in revenue this year may be more permanent than the tweets and policy moves rattling clients.
The New York-based bank plans to slash jobs across its fixed-income and stock-trading operations over the course of 2019, according to people familiar with the matter. That includes at least 100 jobs in the equities unit, which would amount to almost 10% of the division’s workforce, said the people, who asked not to be named because details aren’t public.
For months, as global banks watched their revenue from trading slump, industry leaders have said clients were temporarily taking to the “sidelines” amid unpredictable twists in President Donald Trump’s trade negotiations and the Federal Reserve’s shifting stance on interest rates. Yet a growing number of banks are now cutting staff, a sign that executives are worried about more permanent challenges.
“This won’t be the last trading-related job cuts story,” Jeff Harte, an analyst at Sandler O’Neill, said in a telephone interview. “The rest of Wall Street is thinking the same way.”
Read more: https://www.bloomberg.com/news/articles/2019-07-29/citigroup-plans-to-cut-hundreds-of-trading-jobs-as-revenue-falls
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